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Press Release -- March 31, 2004

Medicare Reform: Changes for 2004 and Beyond

Denver, CO. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) was signed into law by President Bush in December 2003. Seniors will be affected by some of the changes, primarily through increased out of pocket costs.

The Medicare Part B deductible which has been $100 since 1992 will be increased to $110 in 2005 and will increase annually by the same percent that the Medicare Part B premium increases each January.

Starting in 2004, military retirees who did not sign up for Medicare Part B and who are paying a penalty for signing up after age 65, the MMA will eliminate the penalty. To have the penalty waived, military retirees should contact the Social Security Administration at 1-800-772-1213 or Medicare at 1-800-MEDICARE.

The legislation also provided for a 1.5% increase in reimbursement in 2004 and 2005 for physicians.

The caps on therapy services have been lifted until 2006. Therefore, if seniors need physical, occupational, or speech therapy in 2004 and 2005, they will be able to receive all the medically necessary services that are prescribed by the physician, rather than losing benefits after they reach a certain amount of service.

The major change in the MMA is the implementation of the Medicare Prescription Drug Discount card starting June 1, 2004. Approximately 25 companies will offer the Medicare Endorsed Card and discounted drugs to seniors in Colorado. In addition, individuals whose monthly income is less than $12,569 per year ($16,862 for a couple) are entitled a $600 credit on the Medicare Prescription Drug Discount. The full prescription drug program will begin in January 2006.

For more information, call 303-333-3482.