Archive
I. Conference Call Information
Next Medicare Conference Call on September 20
II. In the News
CMS Launches Fall Information and Education Campaign
Medicare Premiums and Cost-sharing Jump 5.6 Percent in 2007
III. Helpful Information
CMS and SSA to mail important information about the low-income subsidy
Updated 2007 marketing material guidelines for Part D Plans
Part D Key End-of-Year Milestones
Spanish Version of Premium Processing Error Letter Now Available
IV. HAP News and Resources
2007 Part D Cost-Sharing Chart
I. Conference Call Information
Next HAP Monthly Conference Call on September 20th
The next HAP monthly conference call for the SHIP network and partners will be held on Wednesday, September 20, 2006 at 3:00 p.m. EDT. Using the same strategies with which we approached the first Part D enrollment period, i.e., breaking down the information, segmenting Medicare populations and following the timeline set by the Medicare Modernization Act, we will engage in an interactive discussion of the work-planning challenges for SHIPs and their partners. Please contact Hilary Dalin at hdalin@hapnetwork.org with your questions, comments and suggestions for this call.
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II. In the News
CMS launches fall promotional campaign
Through a conference call with partners and news release, CMS announced last Wednesday its campaign to promote the upcoming Part D Annual Enrollment Period as well as Medicare’s prevention and screening benefits. The campaign, called “My Health. My Medicare,” aims to raise awareness among Medicare beneficiaries and others that personalized service is available to help them in three forms: online through Medicare’s website, by phone through 1-800-MEDICARE, and in person through SHIPs and other partners. Outgoing CMS Administrator, Mark McClellan, said that, “vital to the success of this year’s Part D enrollment campaign was the participation of 40,000 partners who helped organize nearly 50,000 events in just six months, and our partners are vital to the success of ‘My. Health. My Medicare’ as well.”
CMS created a new web page for its fall 2006 campaign. It has links to new resources such as a power point overview of the “My Health. My Medicare” campaign, and a description of enhancements to the Medicare Prescription Drug Plan Finder website that CMS is renaming “Medicare Options Compare,” effective October 12, 2006.
Medicare premiums and cost-sharing jump 5.6 percent in 2007
CMS reported on September 12 that the Medicare Part B premium will increase by $5.00 to $93.50 for 2007. According to CMS actuaries, the 5.6 percent increase is the smallest since 2001, and lower than earlier projections. The annual deductible for Part B goes up to $131 from $124 in 2006. The Part A deductible for each benefit period will be $992, an increase of $40 over this year’s $952.
Medicare’s Fact Sheet on the 2007 premiums and deductibles also contains background on the reasons for the increases along with a helpful description of the Medicare Modernization Act’s requirement that higher-income beneficiaries pay higher premium amounts. CMS reports that approximately four percent of current Part B enrollees--about 1.6 million--will pay higher income-related premiums.
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III. Helpful Information
CMS and SSA to mail important information about the low-income subsidy
On September 8, the Centers for Medicare and Medicaid Services (CMS) and the Social Security Administration (SSA) released a timeline for communications regarding the low-income subsidy, that beneficiaries may expect in the coming months. This timeline also sets forth important enrollment deadlines and dates. SSA has also mailed notices to beneficiaries who received LIS in 2006 to determine whether they still qualify for 2007 and to explain any steps that the beneficiaries should take.
CMS Postings
Updated 2007 marketing material guidelines for Part D Plans
Both new and existing CMS approved Part D drug plans can begin marketing their plans (pre-enrollment) as of October 1, for an effective date of January 1 in the following year. In addition to print materials, CMS requires the plans to post Part D information on their websites, including formulary information. CMS has posted the final model marketing materials for PDP and MAPD Plans to use when posting their abridged and comprehensive formularies, pharmacy directories which include out of network permissible reasons and costs, identification cards for PDPs and MAPDs, as well as model EOBs (Explanation of Benefits) and Evidence of Coverage. The materials also contain samples of transition letters (Annual Notice of Change) where certain plans are ending and rolling beneficiaries into another comparable plan. It is important to note that the plans can design their own templates and marketing materials. CMS’s posted materials, however, serve as the minimum guidelines for plans to follow. Winzip encryption software is required to read the updated model marketing materials.
Part D Key End-of-Year Milestones
CMS posted on September 8 a nine page “Medicare Part D: Key End-of-Year Milestones” document. It contains eight timelines that detail CMS’s implementation of notice procedures and other activities related to the Part D Annual Enrollment Period. The timelines address eight issues: re-determinations of LIS eligibility, re-assignment of beneficiaries whose plans are terminating, plan payments, retiree drug subsidy, beneficiary communications and enrollment, plan marketing, plan communications, and plan systems operational readiness.
Spanish Version of Premium Processing Error Letter Now Available
CMS has released a Spanish version of the letter to Medicare Beneficiaries about premium processing errors that occurred in early August. A CMS data processing error led to mistaken refunds of Part D drug plan premiums to more than 230,000 Medicare beneficiaries. The refunds came as checks from Social Security or as direct deposits to checking accounts. CMS reported that the mistake affected beneficiaries in all states and the territories, but did not involve any beneficiaries receiving the low-income subsidy, or extra help. The refunds averaged $215.
Draft of Chapter 5 of Medicare Prescription Drug Benefit Manual Released for Comment
On September 5, CMS released a revised draft of Chapter 5 of the Medicare Prescription Drug Benefit Manual. This draft features previous guidance information, common questions and answers, and materials on Health Plan Management System (HPMS). Most of the revisions pertain to explanations of Part D benefits offered by plan sponsors; establishment of Prescription Drug Plan (PDP) service areas; access to covered Part D drugs; availability to beneficiaries of pricing information for generic versions of covered Part D drugs; and privacy, confidentiality, and accuracy of PDP sponsors' enrollee records. Comments were due to CMS on September 18th.
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IV. HAP News
2007 Part D Cost-Sharing Chart
HAP has updated the Medicare Drug Coverage Cost-Sharing Chart for Low-Income Beneficiaries. The revised chart describes the eligibility requirements for each level of the low-income subsidy (including updated Federal Poverty Levels) as well as the 2007 cost-sharing amounts for each subset of the low-income subsidy for Medicare drug coverage. For more information about the low-income subsidy, please visit HAP’s latest online resource.
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