By Eileen Doherty
Open enrollment for Medicare beneficiaries begins October 15 and ends December 7, 2017. Medicare beneficiaries need to review their current health insurance coverage primarily for prescription drugs through Medicare Part D. For those individuals who are currently enrolled in a Medicare Advantage Plan and want to change plans or return to original Medicare, now is the time to make that change.
A major change is a Social Security Cost of Living Adjustment (COLA). Depending on the amount of the COLA, you will most likely see a change in your Medicare Part B premium.
Not all of the 2018 changes in deductibles, co-pays and co-insurance have been released. Part C and D premiums and co-pays vary based on the plan.
The standard benefit for Part D has been released. The annual deductible is $405. After the deductible is paid, you pay 25% of the next $3345 costs of prescriptions. If the total cost of the prescriptions exceeds $3750, you enter the donut hole or the coverage gap. When out-of-pocket an additional $3758, you are eligible for catastrophic coverage. After the annual cost of the drugs exceeds $7508, most costs are paid by Medicare with you paying a small co-pay. While in the donut hole, you pay 44% of the cost for generics and 35% for name brand drugs plus a dispensing fee.
A major change coming in 2018 and 2019 is that Medicare is issuing new Medicare cards. The new cards have a unique number that is different from your Social Security number. Medicare will start issuing these cards in April.
High income earners making more than $85,000 in adjusted gross income will see some significant increases in their Part B and Part D premiums.
Beneficiaries who continue to work have many choices to make about their health insurance. They can a) enroll in Part B and D at age 65; b) may keep their employer coverage with Medicare B paying either primary or secondary; c) delay enrollment in Medicare Part B and D, or d) in some instances continue to be enrolled in the marketplace plan.
If you are staying in the labor force, getting accurate information and filing the correct paperwork is critical to avoid paying Part B and D penalties in the future. It is important to research your situation to make the right decision for you.
~ Eileen Doherty, MS is the Executive Director of the Colorado Gerontological Society since 1982. She can be reached at doherty001@att.net.