Most Trusted Senior Resource Network FOR South Carolina Seniors, Created BY South Carolina Seniors | ||||||
New Medicare Prescription Plan - A Nightmare Mostly Caused By Hidden Scoundrels… |
If you, or someone you love is eligible to receive Medicare, you best be ready to get confused as heck. Why? The new Prescription Plan Part D for Medicare recipients is so complicated, so confusing, so mysterious…that trying to figure out what to do is truly an experience in the Twilight Zone. A true nightmare! Let me explain. In 2003, the President and Congress, in their infinite wisdom…completely changed the prescription drug plan for Medicare to go into effect this year, in 2006. The political story told was, “Too many seniors are eating cat food instead of buying medicine they need…and we, the White Knights of Washington will swoop in and save the day!” I’m not sure if they did “save the day” because when reviewing the new Medicare Part D rules and options…it’s as bad as reading the IRS Tax Code. It’s incomprehensible…and there’s almost no way for the average senior to decipher this mysterious and cryptic plan. For example, look at this information gleaned off of the Medicare web site and other publications like AARP’s monthly magazine that give us so-called “advice” we or our parents can “follow”:
Here is a table to help show you how Medicare Part D works:
Drug Costs/Year Medicare Pays What you pay $0-250 0 Up to $250 $251-2,250 75%, up to $1,500 25% up to $500 $2,251-5,100 0 100% up to $2,850 Max payments Up to $1,500 Up to $3,600 of own money Over $5,100 95% 5% or 2$ co-pay 5$ co-pay/brand name Huh? Anyone get this down? Very simple, isn’t it? (Of course I’m being sarcastic.) Now, exactly, how do you determine if the current reimbursement plan you are under is the same, better, or worse than this brilliant formula? (Also, did you notice that there appears to be a huge gap of annual drug costs that aren’t covered at all? You don’t get reimbursed a penny for annual expenses that exceed $2, 251 and are less than $5,100. The government calls this gap a “hole”.) Wow. How does paying zero for prescriptions in this gap help seniors? (Maybe you can see it. We don’t.) But…this annual payment table you’re supposed to interpret and do logarithmic projection calculations on…is only part of the fun of figuring out what you’re supposed to do with this Medicare Part D. As they say in the infomercials, “But wait – There’s more!” See, this insane plan also has been given out to individual insurance companies, actually hundreds of them…who each have their own insurance plans that are integrated with Medicare Part D. Seniors are getting bombarded with direct mail pieces from the insurance companies telling the retirees to “pick our plan….as we have the best plan for you”. Now, this marketing attack is really bad because reading their brochures and then being able to make an educated decision on what to do…is literally impossible. For example, let’s look at another wonderful piece of “advice” taken from government publications, web sites and private associations like AARP: | Q: How do you decide on a plan? A: The best way to decide on a plan is to compare rates of all the different health care companies. Certain plans will only allow you to get your prescriptions at certain pharmacies. You must do research and find out which company can give you the best coverage at the cheapest and easiest way possible. In some cases it will be better to stay with your current health insurance provider. In others you may be able to change how much you pay on: Premiums, Co-Pays, Deductibles etc. Huh? Am I the only guy who reads this and says to himself, “This so-called “information” and “advice” is as helpful as if the answer was given in the ancient Sumerian language.” How is a senior supposed to figure out if their current plan is better or worse, when the government and publications tell YOU that YOU have to figure it out for yourself? (Now, I’m getting aggravated. Let me calm down for a moment. OK. I’m better.) Anyway, the whole thing is fraught with peril and uncertainty. The reality for 99% of seniors is that they are going to need objective, professional advice on comparing the Medicare Plans you now have, and the one’s you’re considering…and do some financial calculations on a spreadsheet grid to figure out what plan will be better for you. The sad truth is that the average person is just not geared up to handle this incredible level of complexity. Heck, many professionals may not be geared up either! Also, there are many other aspects to this new “money saving” Part D that sound suspiciously like a kick in the profit margins for US drug companies. See if this one gets you mad: *Hidden danger: This new Medicare Part D doesn’t reimburse you for prescriptions bought outside the US! So if you buy any of your prescriptions from Canada, for example, at a 40% (or more) discount from what you’d have to pay your local US pharmacy…you’re now S.O.L. (Old World War II saying that means you’re out of luck.) Great thing, huh? If you now save money by avoiding the US government and drug companies’ stranglehold on our wallets through their collaboration on drug approvals and pricing by purchasing from Canada…you can’t do that any more. They’re making you pay way more under this new plan…that’ll “save you money”. (Can you tell I’m mad again?) Cheesh. As complicated as this whole mess is, I do want to make one mention of what I think about the real cause of this new brainchild of our wonderful leaders in Washington. The drug companies. Yes, them. Now, I’m not some conspiracy nut or anything…but the fact of the matter is that the reason prescriptions drugs are so high for seniors…is that drug companies charge the MOST for drugs to the people LEAST able to afford them! See, the drug industry charges Medicare recipients without any supplementary drug insurance much more than they charge favored customers like large HMO’s and the Veteran Affairs system. Why? Because these large entities can afford to buy in bulk and pay way less per dose! The individual with no coverage gets charged the most because they have no bargaining power. So instead of forcing the drug companies to change the way they do business…they are now forcing seniors into this rats’ maze in order to “help”. (Some help, huh? What’s that old saying, “With friends like these, I don’t need any enemies?”) Does all this sound as awful to you as it does to me? Well, whatever you think of this new Part D, it’s a perfect example of why it’s so important to sit down NOW, and update yours, or your parents’ financial plans! Planning is the key! Consistent financial planning to keep up with today's ever-changing political and economic world is a must, and your best chance at bullet-proofing your finances! Taking the time to review your current financial situation NOW can pay you back a thousands times later! Let us help you review by using the quick contact form below. We will be glad to have our financial experts answer your questions and refer you to one of our elite financial network members here in South Carolina! To read some of our network's success stories, click here |
Email For Advertising Information. Toll-free 24 hr. hotline at 1-877-360-2711 ext. 5050 Copyright © CarolinaSenior.Com The information contained herein is for educational purposes only and does not constitute investment, financial, tax or legal advice. Further, this information is general in nature and is not intended to be reflective of any specific plan. Please contact your personal investment, financial, tax or legal advisor regarding your specific needs and situation. |