& AGING IN PLACE
Early Medicare Open Enrollment: What are your Options?
Much like the recent unexpected snowstorm on the East Coast, the season for Medicare’s open enrollment period comes particularly early this year. Are you prepared? Open enrollment began Oct. 15, and ends Dec.7.
On the bright side, it lasts seven weeks longer than before. Take advantage of this time buffer to understand your options and make an informed decision. You have the option of choosing a private plan or sticking with “traditional” Medicare.
It is important to understand your options to know whether traditional Medicare or a private, Medicare Advantage plan is right for you. If you are interested in Medicare Advantage, you have to decide which of the many available options best meets your individual needs. The additional time also ensures that Medicare administrators have ample time to process any changes from last year so that you will experience a seamless transition.
For more on deciding whether traditional Medicare is right for you, click here.
Many were concerned that changes in the health care reform law would cause Medicare Advantage plans to drop out of the system. For those interested in these plans there are still many available, and availability is largely unchanged from last year.
This is also your opportunity to choose a Part D plan (Medicare prescription drug plans for those in traditional fee-for-service Medicare). Part D plan availability and formulary size is also largely unchanged relative to last year.
Meanwhile, some sections of Medicare are clearly reformed. Some changes announced by the Department of Health and Human Services for 2012 include the funding of 500 community health centers offering primary care services with the intent of improving the coordination and quality of delivered care to people with Medicare. The Centers for Medicare and Medicaid Services will pay community health centers based on the quality of care they deliver, thus incentivizing quality care.
Another notable change: 2012 will be the first year that Medicare Advantage (Part C plans) are paid different reimbursement rates, depending on the quality of the plan itself. Plan qualities are noted by star ratings—the more stars, the better the recorded quality of care the plan has. This feature is also available through Part D.
If you are interested in moving from traditional Medicare to a Medicare Advantage plan, choosing one should be based on the characteristics of the plan, as well as your financial situation. It is important to note potential changes in premiums and cost sharing in deciding whether your current coverage is the best option.
For most beneficiaries, the monthly Part B premium will only increase by a few dollars, due to the increasing Cost Of Living Adjustment (COLA). Meanwhile, Medicare Advantage premiums will drop in 2012 by an average of 4 percent.
In addition to public options, Medicare beneficiaries still have the ability to select private health care plans. This industry is expected to grow in 2012 due to a recent trend of Medicare beneficiaries increasingly choosing private plans.
Before making any changes in coverage, it is advisable to talk to your doctors, beneficiary advocates or call your local State Health Insurance Counseling and Assistance Programs (SHIP) office. Don’t be overwhelmed by the complexity of plans—talk to a professional. Look beyond the premiums, and also consider the plan’s star ratings and quality when weighing options.
B’nai B’rith International continues to advocate for health care recipients and beneficiaries of Social Security, Medicare and Medicaid by spreading information to the public, building coalitions on Capitol Hill and mobilizing B’nai B’rith members.
Next Year’s Social Security Benefits: Going up!
2010 and 2011 were years with low rates of inflation according to the standard measure. Because the standard measure (known as the CPI-W) showed no increase, Social Security benefits did not get a COLA. In 2012, the CPI-W did show inflation and therefore Social Security benefits will rise by 3.6 percent. This increase means $42.57 more a month for the average retiree. Because Medicare premium increases were more modest than predicted, more beneficiaries will get to keep a larger share of the Social Security COLA rather than giving it all back to pay for the Part B premium.
Deficit reduction negotiatiors have repeatedly raised the idea of changing the COLA formula to one that relies on a different measure. That measure generally reports less inflation, so it saves money. But this measure, called the Chained CPI, reflects the spending of seniors and would eventually result in older retirees seeing far less in their checks than under the current system, while the cost of the things they buy, like health care and housing, go up.
B’nai B’rith International believes in strengthening the institution of Social Security and applauds this year’s rise of the COLA. We do not support changing to a COLA that would eventually significantly decrease benefits for the oldest retirees, as well as the poorest seniors. The chained CPI is not an appropriate measure for senior spending or for the inflation seniors experience.
Reflecting on Health this Month
This November, two Presidential Proclamations have already been released by the White House on behalf of two key issues: family caregivers and Alzheimer disease awareness. B’nai B’rith International urges our members to actively engage with these issues to raise awareness of their importance.
The month of November is the first ever National Family Caregivers Month. This month, Americans “honor the millions of family members, neighbors and friends who provide care for their loved ones during times of need.” By recognizing the work of caregivers, we honor their work and importance.
Additionally, this month is National Alzheimer’s Disease Awareness Month. The Presidential Proclamation notes:
“This month, we remember the Americans we have lost to Alzheimer's disease, and we stand with the individuals and families who have felt the pain and sorrow brought in its wake…We join them in looking toward a future free of Alzheimer's disease, and we recommit to making that vision a reality.”
HOUSING CALL IN DAY TOMORROW
B’nai B’rith is proud to sponsor 36 buildings across the United States in partnership with the Department of Housing and Urban Development through Section 202 and similar programs. Future funding that would enable B’nai B’rith and other non-profits to build safe, affordable housing for low-income seniors is at severe risk this year. In fact, it is possible that there will be no funding for new building next year.
Tomorrow, Tuesday, Nov. 8th, we will join with other groups who are concerned about this issue by asking you to call Congress and tell them that housing for the low-income elderly is not a luxury, and that we cannot afford not to do it.
The Section 202 program is an essential part of our continuum of care. The Senate and House are meeting now to decide the final funding levels for the Section 202 program in FY12. Years of level funding have resulted in fewer and fewer Section 202 units being built each year. Now, the Senate has voted to eliminate the Section 202 new development program in the FY12 THUD budget. This is more than 50 percent below the FY10 funding level and over $32 million below the FY11 level, which will produce only 594 new units across the country.
With our senior population aging and poverty rates increasing, we must expand the Section 202 program, not cut it. The Section 202 program, linked to appropriate supportive services, will reduce long term health care costs through reduction of hospitalizations, prevention of premature admissions to institutional settings and reduced Medicaid and Medicare costs.
What can you do?
You can tell your legislators that you care about the need for Section 202 new development. On Tuesday, November 8, please call 866-898-2624. Enter your zip code and follow the prompts to be connected to one of your senators or representatives. Once connected you can use the following sample script:
"I am calling to let Senator/Representative ________ know how important funding is for the HUD Section 202 Supportive Housing for the Elderly Program. It is the only program that develops supportive housing for seniors with very low incomes. There are long Section 202 waiting lists, an increase in senior homelessness and a growing senior population. Now is not the time to cut funding for senior housing. Please call the appropriations conferees and tell them to support the House funding level of $600 million for Section 202."