The study included more than 200 healthy adults with half over the age of 65 and half under the age of 65. One of the groups had three plans to choose from, another group had 10 plans to choose from, and the third group had 20 plans to choose from. The results obtained from the study showed that the groups that had the choice of many plans had more difficulty choosing one that was cost-effective. The study also noted that older adults are less likely to choose the least-costly plan yet more confident that they had made the right decision than the younger adults.

“Many seniors are unaware that they can be saving hundreds of dollars every year by choosing a different drug plan, because there are entirely too many choices for them to navigate,” said Yaniv Hanoch, Ph.D., author and lecturer at the University of Plymouth.”The system should limit choice and empower its beneficiaries to make informed and cost-effective decisions about their prescription drug plan.”

Recommendations include fewer options to improve the system by lowering the number of plans to 10 or less. Also, because the system is so difficult to navigate, seniors were reluctant to switch plans during the annual open enrollment period.

The study was funded by the Robert Woods Johnson Foundation and can be found at http://www3.interscience.wiley.com/journal/122407933/abstract. It will be published in the August 2009 issue of Health Services Research.

The Medicare Part D plan is notorious for its so-called doughnut gap. The doughnut gap is the gap in coverage where beneficiaries generally start paying the full cost for their medicines. This happens when total drug expenditures by the beneficiary reach $2,700. This gap in coverage usually occurs during the summer or fall and it forces millions of beneficiaries to pay the full cost of their drugs. Congress is now being called on to eliminate or at least decrease the gap as part of the efforts to reform health care.

The main challenge that Congress has in trying to close the gap is where the money will come from. The Congressional Budget Office claims that closing the gap and providing continuous coverage for all beneficiaries would cost $134 billion over 10 years. At a time when the government is already struggling to reduce the federal deficit and Medicare is already estimated to go bankrupt by 2017, the concern over the gap may have to be dismissed and people under Medicare may have to continue spending thousands of dollars a year to fill their prescriptions.

This year an estimated 3 million of the 27 million older Americans who receive Medicare drug benefits will reach the coverage gap and pay the full cost of their prescriptions or risk their health by reducing their medication or stop taking it altogether when their costs reach $2,700. These Americans will be on their own to pay the next $3,454 of prescriptions before they become eligible for Medicare’s catastrophic coverage. With that coverage, beneficiaries are only responsible for only 5% of their bills for the rest of the year.

If you need help deciding what plan is best to fit your needs, there are many resources at your disposal to help during the open-enrollment period. In order to make an informed decision, you must know the basics first.

Medicare Advantage Prescription Drug Plans include Medicare Part A (hospital), Medicare Part B (doctor’s office visits), and Part D (prescription drug coverage). Medicare Part D plans only include prescription drug coverage and are usually purchased by people who already have Original Medicare (Part A and B).

Since the lists of covered drugs are changing as well as restrictions and costs, Medicare beneficiaries are being advised to review their current plans to make sure it will still benefit them in 2009. Because the enrollment period will soon come to a close, beneficiaries should review their plan and then begin viewing other plans and pricing. You should consider costs, doctors/providers, and travel when choosing a plan. Costs, such as premium, copayments, coinsurance, and deductible expenses, are changing. You also need to make sure that you’re able to visit the providers you want on your current plan and check to see if there will be additional costs if the provider is out of network or referrals are needed. You may also be travelling in the near future. Are you drugs covered if you travel to another state? You should make sure that your plan provides coverage in other states.

According to the Centers for Medicare and Medicaid (CMS), average monthly premiums for standard Part D coverage will be $28 in 2009, as opposed to the $25 in 2008.

What do you need to do when considering Medicare Part D plan?

1)Assess your needs. What prescription drugs are crucial to your life style?

2)Consult your doctor and pharmacist. Make sure they are still in your network under the plans you are considering.

3)Review all plans and prices to see which is best fit for you.

The Open Enrollment period for Medicare Part D ends on December 31^st which gives you two more weeks to make some very important decisions. Plans begin on January 1, 2009 and late charges and penalties may apply if you wait too long.