Dena Bunis of AARP reported on August 3 that the average monthly cost for Part D plans may drop about $1.20 for 2018 plans.  (Premiums for some plans may be increasing but the AVERAGE premiums nationally will be decreasing.  Late enrollment penalties for not buying Part D plans when first eligible are based on this average; the effect is that late enrollment penalties will be decreasing for 2018.)

"For the first time in five years, the average monthly premium for  Medicare Part D prescription drug coverage is expected to decrease next year.

The average basic premium is projected to decline in 2018 about $1.20 to an estimated $33.50 per month--a 3 % savings over this year, according to the Centers for Medicare and Medicaid Services (CMS). About 43 million adults 65 and older are enrolled in Medicare Part D plans.

The projected decline in the  average premium is the result of bids that drug plans have submitted for 2018. CMS attributes these lower bids to increased pharmaceutical manufacturer rebates and other price concessions the plans are receiving.

The actual amount Part D beneficiaries will pay varies widely. Medicare recipients usually have a choice of about two dozen drug plans in their areas, and the premiums charged depend on the level of deductibles and copays--as well as the prescriptions the plans cover.

Income also affects  how much Medicare beneficiaries will pay for prescriptions. Adults 65 and older whose income is below 150 percent of the federal poverty guidelines--$18,090 in 2017--who also have  modest assets may be eligible for the Part D Low-Income Subsidy (also called "Extra Help") plan.

CMS expects to release actual premiums and costs for 2018 in mid-September. Medicare's open enrollment period begins October 15 and closes December 7."

Our Comment: Details of 2018 Part D plans will be released between the middle and end of September. We're permitted to discuss 2018 plans with beneficiaries starting October 1, and eligible individuals can enroll or change plans between October 15 and December 7. 

Details of the 2018 plans will also be released and shown in the Part D Drug Finder on  www.medicare.gov on October 1. As always, we recommend that beneficiaries check coverage for all their drugs because copays and/or tier levels may have changed from 2017, and certain drugs covered in 2017 may be dropped from the formulary for 2018.

Please call us at  877-734-3884 or  561-734-3884 and we'll be happy to check out your drugs for you.

ANOCs (annual notice of change documents) and the annual Guide to Medicare are sent to Medicare beneficiaries during September, and usually arrive late in the month.

Both of these are very important documents and should not be discarded.  Medicare beneficiaries receive many advertising pieces and much mail regarding next year's plan choices during September and early October, and, unfortunately, a number of beneficiaries discard both those marketing pieces as well as ANOCs and Guides to Medicare.

It's VERY important to retain both of these documents.  ANOCs describe changes to your Medicare Advantage, Medicare Advantage Drug Plan, and stand-alone Part D drug plan (as applicable) for the next year.  ANOCs are very comprehensive documents and are often about ¼ inch thick.  They'll explain changes in drug coverage for the next year, including copays, deductibles, tier level changes, and if any drugs are dropped from the formulary.  They'll also explain any changes to your medical coverage and other covered benefits, as well.  It's important to read and retain these documents and to call us with any questions you might have about changes to your plan.

The Guide to Medicare has a red, white, and blue cover and contains a description of the different parts of Medicare.  You should keep the Guide to refer to how Medicare will work for the coming year.  The appendix also contains short summaries of the Medicare Advantage, Medicare Advantage Prescription Drug, and stand-alone Part D plans in your area.

We send out communications to all our clients that are designed to reach homes on October 1 or 2.  We keep in close touch with clients and are always available to help them.  We attempt to reach all our clients by phone between October 1 and October 15 to discuss how they're affected by changes and to discuss alternatives for the coming year; any client who doesn't hear from us in this time frame should get in touch with us.. 

Please call us on or after October 1 at 561-734-3884 or 877-734-3884 to discuss how you're affected by any changes.