From Sharon O'Brien,
Your Guide to Senior Living.
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Whether you are considering joining a Medicare Prescription Drug plan for the first time, or you would like to switch to a different plan, there are changes in the Medicare Prescription Drug Plan 2007 that you should know about.

To help consumers understand the confusing Medicare Prescription Drug options, two organizations have released reports that compare the Medicare Prescription Drug Plan in 2006 to the offerings in 2007. Here are highlights of changes you will find in the Medicare Prescription Drug Plan 2007:

From the Kaiser Family Foundation:

• More Medicare Prescription Drug plans to choose from. Across the United States, the number of available Medicare Prescription Drug Plan providers has increased by 30 percent .
• Premiums are going up. About 77 percent of people who are enrolled in the Medicare Prescription Drug plan have policies that will cost more in 2007--and 28 percent of those people will see rate hikes of at least 25 percent.

From FamiliesUSA:

• Coverage in the doughnut hole is shrinking. In 2006, Medicare Prescription Drug subscribers who reached total drug expenses of $2,250 found that they fell into a gap, now called the doughnut hole. While Medicare Prescription Drug subscribers had to keep paying monthly premiums, their drug expenses were not covered until their total reached $5,100. As FamiliesUSA points out, this doughnut hole “financially penalizes” seniors who are more ill and who need more medication, and causes increased stress and financial worries for subscribers and their families.

  While the Medicare Prescription Drug Plan claims to offer policies that provide coverage for subscribers in the doughnut hole—between $2,400 and $5,451 in 2007—FamiliesUSA reports that the number of states offering no Medicare Prescription Drug Plan doughnut hole coverage increases from four in 2006 to 13 in 2007. This includes states with large senior populations (Florida, Michigan, New York, and North Carolina), plus all of the New England states.

• If you can find doughnut hold coverage in your state, chances are it’s for generic drugs only—if you can find generic drugs.Of the few providers who offer doughnut hold coverage, most cover only generic drugs. FamiliesUSA reports that of the 25 most commonly prescribed drugs for seniors, 18 of them are not available in generic form.

Where to Get Help Sorting Out the Medicare Prescription Drug Choices
With more choices and more restrictions in Medicare Prescription Drug Plan 2007, it’s more important than ever to consider all of your options carefully to be sure you are making the right choice.

These resources can help you determine the costs and benefits of the Medicare Prescription Drug Plan 2007, and help you decide if the Medicare Prescription Drug plan is right for you.

• Check out the Medicare Prescription Drug Web site for plan explanations, search tools to help you find plans in your state, typical scenarios to see if a Medicare Prescription Drug plan would work for you, and instructions for signing up.

  When you evaluate your options in the Medicare Prescription Drug plan, be sure to look at the drugs you take so you can make sure they are covered and accurately predict your expenses. Medicare offers a Formulary Finder on the main page that can help you determine if the prescription drugs you take are covered under the Medicare Prescription Drug plan.

• The Kaiser Family Foundation offers a Medicare Drug Benefit Calculator that will help you determine how much money you could spend (or save) using a Medicare Prescription Drug plan. Please note that all costs and benefits are estimated, because the site has not been updated to represent 2007 premiums or benefits.