Revamped Tool To Help Medicare Patients Pick Prescription Plans Steering Them Toward More Expensive Coverage
The Medicare plan finder’s issue stems from a significant change the agency made for 2020. The plan with the lowest premium now gets automatically placed on top, with the monthly premium displayed in large font. Medicare’s previous plan finder automatically sorted plans by total cost, not just premiums, because they are only one piece of information. Meanwhile, a new study shows that Medicare prescription plans are slower to cover new generics than private plans.
The Associated Press:
Medicare Drug Plan Finder Can Steer Seniors To Higher Costs
Medicare’s revamped prescription plan finder can steer unwitting seniors to coverage that costs much more than they need to pay, according to people who help with sign-ups as well as program experts. Serving some 60 million Medicare recipients, the plan finder is the most commonly used tool on Medicare.gov and just got its first major update in a decade. (Alonso-Zaldivar, 11/21)
Bloomberg:
Pricing Tactics Slow Uptake Of Generic Drugs By Medicare Plans
Medicare prescription plans are much slower to cover new generic drugs than private plans, according to an industry study, a sign that many seniors may be overpaying for their medicines. A research report on Thursday from the Access for Affordable Medicines, or AAM, a lobbying group for the generic-drug industry, shows just 22% of generic drugs are covered by Medicare plans in their first year on the market, compared with the 46% of new copycat drugs covered by commercial drug plans. (Koons and Griffin, 11/21)
And The Wall Street Journal offers advice on navigating Medicare enrollment —
The Wall Street Journal:
Tiny Tax Moves Can Save You Big On Medicare Premiums
Now is a good time for higher-earning Medicare recipients to check whether a small reduction in this year’s income could make a big difference in future premiums. Here’s why. Medicare premiums are based on income, and the formulas have “cliffs” that can raise premiums steeply if income rises by even one dollar. In addition, there’s a new inflation adjustment for 2020 that complicates the situation. These features are producing odd results. (Saunders, 11/22)
