U.S. Government announces 2009 Medicare drug plan premiums

Seniors enrolled in Medicare’s drug benefit will pay average monthly premiums of $28 next year, government officials announced today.

That’s about $3 higher than the 2008 average premium, or a 12 percent increase.

“Average plan bids have increased at roughly the same rate as drug costs,” said Paul Spitalnic, an official with the federal Centers for Medicare & Medicaid Services.

Premiums are set by the private plans that offer drug benefits under Medicare and will vary depending on the plan and location.

The average increase affects nearly 25 million Medicare beneficiaries — 7.6 million in Medicare Advantage plans with comprehensive coverage and 17.4 million plans that cover only drugs.

While officials said the premium increase was well below projections, advocates noted that it exceeds the annual cost of living increase for Social Security, which remains under 3 percent.

The problem is “the government is failing to do anything about the runaway prices that Americans pay for drugs” because it won’t negotiate price discounts directly with drug companies, said Robert Hayes of the Medicare Rights Center.

The annual enrollment period for Medicare Part D begins Nov. 15 and extends through the end of the year. This is the only time of year that seniors can elect to change their plans.

For 2009, the annual deductible for Part D plans (the amount consumers pay before coverage kicks in) will be $295. Once you pay the deductible, your Medicare Part D plan will pay 75 percent of your drug costs up to $2,700.

Then, you enter the so-called “donut hole,” and you’re responsible for 100 percent of your drug costs up to $6,153.75. After that, the government will pay 100 percent of your drug bills.

In other words, you could end up paying $4,350 in 2009 out-of-pocket for drug expenses before Medicare will take over paying for all your drugs.

In Illinois, seniors with low incomes will want to make sure they consider applying for assistance that can help cover these extra expenses. For more information about Illinois Cares Rx, one of these programs, click here. To obtain this assistance, you have to work with a Medicare drug plan that partners with Illinois Cares Rx.

If you’re very low income, you probably qualify for a program known as Extra Help. For more information about Extra Help, click here. To qualify, you’ll have to apply and be approved by the Social Security Administration.

For help figuring out how Medicare Part D works, counselors are available at the organizations listed below.

Illinois Department of Aging Senior Help Line 1-800-252-8966

Illinois Senior Health Insurance Program 1-800-548-9034

AgeOptions, suburban Cook County 1-800-699-9043

Chicago Department of Senior Services 1-312-744-4016

Aetna Helps Medicare Members Organize Medical Information and Monitor Health with CareEngine-Powered Personal Health Record

HARTFORD, Conn. – September 3, 2008. – Aetna announced today that it has made its CareEngine-powered Personal Health Record (PHR) available to current Aetna Medicare members who purchased their Medicare plans individually. This unique, interactive tool is designed to better engage Medicare members in managing their own health, as well as make it easier for members to share health information with their physicians.

Aetna’s PHR combines a wide variety of health information gathered from across the health care spectrum — such as physician offices, labs, diagnostic treatment and pharmacies — with user-entered information such as family history or allergies, and houses it in a secure, online location. This type of tool is especially important to Medicare members as more and more of them use the Internet. A May 2008 study from the Pew Internet & American Life Society estimates that 35 percent of individuals age 65 and over use the Internet, and the percentage increase for this age group has been greater than any other since 2000.

“This is a great example of the value that we provide to our Medicare members,” said Frank McCauley, head of Aetna’s Consumer Business Segment. “Instead of storing medical records in a file cabinet or a shoe box, Aetna’s PHR allows members to access their medical information any place an Internet connection is available.”

With permission from the member, the Personal Health Record can be shared online with physicians and other health care professionals. In addition, members can easily print copies to bring to office visits to help fill out forms. They also have the ability to create and print a wallet-sized Emergency Information Card that contains important information such as name, date of birth, blood type, emergency contacts, allergies, medications, and physician and insurance information.

Aetna’s PHR also uses patented CareEngine technology that continuously scans an individual’s health data and claims information and compares it to current, established medical best practices. It can then alert members and doctors about possible urgent situations and opportunities to improve care.

Recent Enhancements

Through a recent pilot program that made the PHR available to more than 750,000 members, Aetna discovered that members with an ongoing health condition were twice as likely to use their PHR as those without one. In part because of this finding, Aetna added Health Trackers to the PHR to help members better follow their health data. With this new feature, members can more effectively monitor their blood glucose levels, blood pressure, cholesterol, BMI and more.

Aetna has also made the PHR available online to treating physicians’ offices (if given access by the member) through Aetna’s secure provider website via NaviNet®.

“With age usually comes an increased need for health care services, and our Medicare members are more likely to have chronic conditions they need to monitor on an ongoing basis,” McCauley said. “These new features will give them the ability to better track their own health information and share it with their physicians. Improvements in both of these areas can help our members make better decisions concerning their health care.”