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Press Release -- October 17, 2004

Seniors Face Higher Costs in Medicare and Don't Take Advantage of Discounts on Drugs

Denver, CO. Seniors are facing a 17% increase in the Medicare Part B premium which increases from $66.60 per month to $78.20 per month in 2005. In addition, seniors will have to pay the first $110 for the Medicare Part B deductible which has been $100 for many years. These two charges will amount to more than $150 in new charges to Medicare beneficiaries in 2005.

While seniors face these increases which are set by Congress, many are reluctant to sign up for the discounts offered through the Medicare Prescription Drug Discount Cards. In Colorado, 79,000 low income seniors are entitled to a $600 benefit in 2004 and an additional $600 benefit in 2005.

Even though the benefits of the Prescription Drug Discount Cards may be confusing, the discounts may seem small, and enrollment is sometimes difficult, seniors who have a $100 per month drug bill could see a minimum of $120 or more of savings, decreasing their out of pocket expenses for 2005.

Other increases in Medicare that seniors will face in 2005 include increases in payments for hospital care. For those persons who are in original Medicare, the Part A deductible will increase to $912 per benefit period. The co-payment for persons going to a nursing home under a Medicare stay, will increase to $114/day for days 21-100. Persons enrolled in HMOs may also see changes in premiums and co-pays.

Medicare will feature new preventive benefits including a "Welcome to Medicare Physical for those turning 65", a cardiovascular screening, and nutrition therapy for those with kidney disease. The cardiovascular screening covers total cholesterol, high density lipoprotein and triglycerides once every five years with no co-payment.

For the past several years, after the Medicare Part B deductible is paid, Medicare has covered glucose monitors, test strips, and lancets. The individual has to pay the twenty percent co-pay.

Medicare has expanded the coverage for diabetics as well. Medicare will now pay for lab tests for a fasting plasma glucose and post-glucose twice a year at no cost for diabetics as well as nutrition counseling. For diabetics experiencing peripheral neuropathy, Medicare will pay for foot care every six months if the person has not seen a foot specialist between visits. The individual must pay the twenty percent co-pay.

The cost of living increase for Social Security benefits has not been announced, but may not be enough to cover the increases that seniors will experience in Medicare, thus a reason to sign up for the Discount Cards.

Individuals can still sign up for the Discount Card to get some financial relief for the increased costs in Medicare Part A and B charges that will take effect January 1, 2005. There are no resource requirements to sign up for the Prescription Drug Discount Card.

A special feature of the discount cards is a $600 credit to individuals who are low income ($1047 per month for an individual and $1405 for a couple with no resource requirements). To be eligible for the $600 credit, individuals must sign up before November 30, 2004 to receive the $600 credit for 2004. To receive the full credit for 2005, individuals must sign up before May 15, 2005.

Congress has approved automatic enrollment in the Discount Cards for Colorado seniors who are enrolled in other Medicaid programs. But Colorado still has many seniors who are eligible, but not taking advantage of the $600 credit.

Individuals whose income is more than $1047 ($1405 for couples) may be eligible for additional prescription drug assistance through Patient Assistance Programs and Together Rx to help offset some of the increased costs in Medicare.

For assistance regarding the new charges in Medicare or enrolling the Medicare Prescription Discount Card program, call 1-800-Medicare or 303-333-3482.