Volume 2, Number 7
News For Medicare Beneficiaries
IN THIS ISSUE...

  • WHEN MUST I BEGIN USING MY NEW MEDICARE CARD?
  • NEW SOCIAL SECURITY AMOUNT LETTERS FOR 2019 MAILED
  • CIGNA-EXPRESS SCRIPTS ACQUISITION CLOSED DECEMBER 20
WHEN MUST I BEGIN USING MY NEW MEDICARE CARD?
Many Medicare beneficiaries have received their new Medicare Card, which uses what is called a Medicare Beneficiary Identifier (“MBI”). 

This is randomly generated and uses a combination of eleven letters and numbers in the following format (“L “ stands for letter; “N” stands for number): first character: N; second character: L; third character: L or N ; fourth character N----fifth character : L; sixth character: L or N ; seventh character-N----eighth character: L; ninth character: L; tenth character: N; and eleventh character: N .
 
Note that the third and sixth characters can use either a letter or a number, all the other characters are limited to letters or characters as indicated.

Numbers can be any number between 0 and 9; letters S, L, O, I, B, and Z are not used because they can easily be confused with numbers (e.g. S can be confused with 5, O can be confused with 0, etc.)

Beneficiaries MUST begin using the new cards January 1, 2020
Meanwhile either the old or new numbers can be used. Newly eligible beneficiaries are receiving only the MBI cards.

Providers are asking beneficiaries to provide them with their new numbers, if they have them, for new appointments. We suggest that you begin using your new MBI cards when they arrive and that you destroy you old cards, which used what was called a HICN, which was a Social Security number (yours or your spouse's, depending on whose income was used for calculating Social Security, plus one or two letters.
NEW SOCIAL SECURITY AMOUNT LETTERS FOR 2019 MAILED
The Social Security Administration mailed out letters in December announcing beneficiaries’ new Social Security amounts for 2019. These letters reflected the 2.8% Social Security increase and also indicate the new Medicare Part B premium ($135.50 for most beneficiaries) for 2019.

The letters also include deductions for Medicare Part D premiums (for those paying through Social Security), as well as Medicare Part C (Medicare Advantage) premiums for those who chose a Medicare Advantage plan with a premium and elected to pay these premiums through Social Security. If a Part A premium is due, that amount is also indicated.

Individuals earning above $85,000 and couples earning over $170,000 are affected by what is called Part B IRMAA (which increases their Part B premium) and Part D IRMAA (which is an add-on to their Medicare Part D premium). These amounts are deducted from Social Security payments.

The Social Security amount indicated includes both the gross number BEFORE the above deductions and the NET number after the deductions.

Those who are not drawing Social Security must pay their Part B premiums, including Part B and D IRMAA, and Part A premiums on a quarterly basis to Social Security.

If you have a Medicare Supplement or Medicare Advantage plan, you MUST continue to pay your Part B premium or IRMAA payments (and Part A premium, if applicable) or you will lose coverage. 

Carriers have the option to cancel Part D coverage if you do not pay the Part D premium on a timely basis. 
CIGNA-EXPRESS SCRIPTS ACQUISITION CLOSED DECEMBER 20
CIGNA’s acquisition of pharmacy benefit manager Express Scripts closed December 20. This follows the closing of the other large acquisition—CVS’s acquisition of Aetna.

CIGNA-Express Scripts, CVS-Aetna, and United Healthcare-Optum now use the same operating model: a large insurance carrier allied with a pharmacy benefits manager.

Please see this article for more information
About Paul Cholak
Paul has over forty years of benefits experience and has been Director of Employee Benefits for large companies, as well as a benefits consultant with major consulting firms. He understands the health and life insurance needs of Medicare beneficiaries, as well as individuals and families of all ages.

We guide you through the steps of getting health and life insurance, and remain available to help you AFTER you've made your purchase decision.
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