Part D 2012 Standard Benefit Model Changes
Part D 2012 standard benefit model changes mean greater out-of pocket costs
In today’s economy counting pennies has become important for some people to meet their monthly budgets. With health care costs rising and Social Security cost of living raises non-existent you need to have an affordable Part D drug plan.
The following information details the Part D 2012 standard benefit model changes. Although the changes are not too drastic for 2012, looking at historical data demonstrates that your Part D benefit may become more expensive in coming years.
The details below highlight the Part D standard benefit plan which represents the minimum allowable plan benefits that can be offered.
2012 Part D standard benefit model
Initial Part D deductible – can be as high as $320 which is up from $310 for 2011 plans.
Initial coverage limit – will be set at $2930 up from $2840 for 2011 plans.
Out-of-pocket threshold amount – increases to $4700 from $4550 in 2011.
Donut hole – will actually be larger for 2012. The coverage gap begins when the initial coverage limit of $2930 has been met and ends when the out-of-pocket threshold of $4700 has been met. This will add $60 to the size of the donut hole.
The Catastrophic coverage portion – for 2012 is reached after you have come out of the donut hole. Minimum cost sharing will increase to the greater of 5% or $2.60 for generic or preferred drugs that are a multi-source drugs and the greater of 5% or $6.50 for all other drugs.
Help within the Part D donut hole
Thanks to health care reform you will still receive help when you are in the coverage gap. You will pay only 50% for brand name drugs and a maximum of 86% for generic drugs.
The full price of the drugs will still count toward getting out of the donut hole even though you are only paying a portion of the full cost. It would be very surprising to see any type of donut hole rebate given the brewing budget battles in Washington D.C.
2012 Part D Enrollment Period Changes
Aside from the Part D 2012 changes to the standard benefit model you should also take note of the new time frame for thew Annual Enrollment Period.
Insurance companies may begin marketing 2012 Part d plans as early as October 1 and plans with a January 2012 effective date may be applied for between October 15, 2011 and December 7, 2011.
Compare plans online or visit the Medicare website to see all available plans in your area.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment