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CMS is working toward a smooth transition to ensure continued prescription drug coverage for all Medicare beneficiaries who received extra help in paying their prescription drug costs in 2007. Specifically, CMS is taking several actions in order to reach out to the beneficiaries receiving the low-income subsidy (LIS) who are facing a change in their Part D premiums in 2008, including providing more information to beneficiaries about these changes via two letters. This fall, CMS is sending both the blue reassignment letter which was sent last year and a new tan letter to beneficiaries receiving the LIS who selected a plan, but who will be responsible for paying a portion of their plan premium beginning in January 2008 unless they join a new plan. During the week of October 29, 2007 CMS will begin mailing the following: Re-assignment Notices (Blue): Medicare will mail re-assignment notices to people who qualify for the full extra help and will be reassigned to a new plan in 2008. Some people will be reassigned because their 2007 Medicare Prescription Drug Plan’s premiums are increasing for 2008 (Publication No. 11209). This includes about 1.16 million people who will be moved to a new plan outside their current organization. The reassignment notice they receive will provide information about three options: moving to the new plan, staying in the current plan, or selecting a different plan. Details about their new zero premium plan (including co-payment amount, and yearly deductible) are provided, along with the name of their new organization and a phone number that can be used to get additional information about prescriptions covered, drug coverage rules (like prior authorization), and local pharmacies that can be used. The notice also provides information about the person’s current plan, and a list of all the zero premium plans in the area. An additional 965,000 people will be moved to a new plan within their current organization. These people will receive the same reassignment notice described above; the only difference is that the name of their organization may remain the same, even though their plan is changing. About 1,550 people will be reassigned because their 2007 Medicare Prescription Drug Plans are terminating (Publication No. 11208). This notice specifies that their current plan is leaving and also provides information about their new plan, and alternative options. All reassignment notices are printed on blue paper and inform beneficiaries that that they will be reassigned to a new plan if they don’t tell their current plan they want to stay or join a new plan on their own by December 31, 2007. **NEW** “Chooser” Notices (Tan): Medicare will mail chooser notices (Publication No. 11267) to a total of about 442,000 people who qualify for the full premium subsidy and who chose to join a Medicare Drug Plan that was “free” (no premium liability) when they first joined, but whose premium will be above the regional low-income premium subsidy amount by more than $1 in 2008. To respect individual choice, Medicare does not reassign LIS beneficiaries who joined plans on their own or switched to different Medicare Prescription Drug Plans than the plan Medicare enrolled them in. These letters are printed on tan paper and inform beneficiaries what their out-of pocket payment will be in 2008, lists the zero premium plans available, and provides a list of important things to think about when considering plan options such as pharmacy networks, drugs covered, and satisfaction with current plan. The following materials related to these two mailings have been posted to the Limited Income and Resources web page
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