November 15, 2005 Is the first day to enroll in a Medicare Part D plan

Starting January 1, 2006!

Medicare will soon be offering insurance coverage for prescription drugs through Medicare prescription drug plans. Insurance companies and other private companies will work with Medicare to offer these plans. These plans will help you save money on your prescription drug costs. Medical practice has come to rely more and more on new drug therapies to treat chronic conditions and out-of-pocket spending on drugs has increased dramatically. In order to get this prescription coverage, you must choose and enroll in a Medicare prescription drug plan that meets your needs.

Who can join?

Anyone with Medicare Part A and/or Part B can join a Medicare prescription drug plan offered in their area. If you are in a Medicare Advantage Plan (like an HMO or PPO), your plan may also offer drug coverage.

When can I join?

If you currently have Medicare Part A and/or Part B, you can join a Medicare prescription drug plan between November 15, 2005 and May 15, 2006. If you join by December 31, 2005, your Medicare prescription drug plan coverage will begin on January 1, 2006, and you won’t miss a day of coverage. If you join after that, your coverage will be effective the first day of the month after the month you join.

If you join a Medicare prescription drug plan after May 15, 2006, you are likely to pay a higher monthly premium unless you currently have a drug plan that covers at least as much as a Medicare prescription drug plan. You will have to pay this higher premium as long as you have a Medicare prescription drug plan.

How much does it cost?

Like other insurance, if you join, you will pay a monthly premium (generally around $37 in 2006) and a yearly deductible (up to $250 in 2006). You will also pay a part of the cost for your prescriptions, including a copayment or coinsurance. Costs will vary depending on which drug plan you choose. Some plans may offer more coverage and additional drugs for a higher monthly premium. If you have limited income and resources, and qualify for extra help, you may not have to pay a premium or deductible.

When can I get more information?

Detailed information about Medicare prescription drug plans in your area will be available in the fall of 2005. Throughout 2005, Medicare will provide general information to help you get ready, including how to choose and join a plan that meets your needs.

In the fall of 2005:

• You will get the “Medicare & You 2006” handbook in the mail. It will list the Medicare prescription drug plans available in your area.
• You will be able to get free personalized information at http://www.medicare.gov/ on the web, or by calling 1-800-MEDICARE (1-800-633-4227) to help you choose the plan that meets your needs.
• You can get free personalized counseling from your State Health Insurance Assistance Program (SHIP), and other local and community-based organizations. Call 1-800-MEDICARE to get the telephone number of the SHIP nearest you.
  
  For additional information, visit:
• Medicare-approved drug discount cards available in your state
• www.medicare.gov/medicarereform/drugbenefit.asp
• www.medicare.gov/default.asp

Make Health Insurance More Affordable

If the cost of health insurance is killing you, there are some money-saving strategies you might want to look into. For example, you might combine a high-deductible plan with a tax-sheltered health savings account, or HSA -- more than a million Americans have signed up for such an approach.

According to a recent Associated Press report, the new high-deductible health insurance policies are "a bit complex, but a growing number of insurers offer them."

It explained that, "Under federal law, the policy must have a minimum deductible of $1,000 a year for an individual and $2,000 for a family; maximum out-of-pocket expenses -- for example, copayments required for surgical procedures -- cannot exceed $5,100 for individuals and $10,200 for families. Policyholders, meanwhile, can set up HSAs that they fund with their own money. Employers also can contribute to their workers' HSAs. HSA contributions, generally set at an amount equal to the policy's deductible, can be used to cover health care costs, and unused money can be carried over at year's end."

You can get more information on plan designs and quotes at HSA411.COM

United Healthcare Buys NHP

NHP has provided small employers with HMO plans for over 10 years. For many of those years there's been rumors of takeovers, buyouts, and bankruptcy. Last month the announcement was made that United Healthcare bought NHP. Read the South Florida Business Journal article.

Some would say that United & NHP were not direct competitors because they had different plans & pricing. However, when there is potentially one less choice available in the market, the end user is the real loser. Time will tell if United really just bought market share, and plans to dissolve the NHP products altogether while slowly merging the clients into UHC plans. This would take time for them to do so. Kind of reminds me of when Huzienga sold off the Florida Marlins piece by piece (player by player)

Or perhaps they'll do what they're saying...keep the offering as an alternative to the higher priced plans that United is currently offering.

SBA to host HSA webchat

The U.S. Small Business Administration will host a free Web chat on health care for small businesses at 1 p.m. Aug. 25.

Karen Kerrigan, founder of the Small Business and Entrepreneurship Council, and J.P. Wieske, director of state affairs for the Council for Affordable Health Insurance, will host the seminar. They will talk about association health plans and health savings accounts, as well as other cost-efficient solutions to the challenges of health-care coverage.

The chat is interactive, allowing Web chat participants to ask questions. Participants can join by going to www.sba.gov and clicking "Your Small Business Voice Online" on the left rail.

Identity Theft

Identity theft is the unauthorized use of personal information for the purposes of obtaining financial gain. The unlawful use of another person’s personal data to open new credit card accounts, take out loans, or set up unauthorized financial accounts would be examples. While the information is being used illegally by the perpetrator for economic benefit, the unsuspecting consumer is the one left impacted by the financial fallout.

The Identify Theft Data Clearinghouse reported that the state of Florida received 16,062 complaints in 2004 regarding identity theft.

The Department of Financial Services cautions consumers to take extra care with the documents that have their personal identifying information such as social security numbers on them.

Today, many health insurance companies use a consumer's social security number as the member identification number. This information is printed on insurance cards that are commonly kept in purses or wallets.

The Department of Financial Services encourages consumers to contact their insurance company to request that their social security number not be included on the insurance card as a form of member identification. It can be requested that the membership number be changed to protect personal data.