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Nov. 15, 2006 -- The breadth and cost of drugs under Medicare's Part D prescription program are set to change in the program's second year, which begins open enrollment today.
About 40 million seniors receiving drug benefits have until Jan. 1 to switch plans if they choose to. About 2.7 million people expected to turn 65 this year will be asked to choose a plan for the first time.
Medicare officials say they expect insurers to offer 1,875 separate plans in 2007, nearly a third more than in 2006. Beneficiaries in most states have an average of roughly 40 plans to choose from.
The basic structure of most plans will remain roughly the same, officials say. But premiums for many plans are expected to rise, in some cases as much as 15%, while fewer plans will offer comprehensive coverage for brand-name and generic drugs.
Nearly eight in 10 beneficiaries are in plans with premiums that are expected to rise next year, according to an analysis release by the Henry J. Kaiser Family Foundation earlier this week. In many cases the rise will be less than $5 per month, the group says.
Insurers are set to mail millions of letters alerting seniors to changes in prices or covered drug lists in their current plans.
"Do another look, because the fact of the matter is they may need to make a change between 2006 and 2007," Leslie Norwalk, the acting administrator of the Centers for Medicare and Medicaid Services, said Tuesday during an online conference hosted by Kaiser.
Officials are again urging seniors to call (800) MEDICARE or go to the Medicare.gov web site for help in choosing a plan.