On Monday, the Centers for Medicare and Medicaid Services (CMS) announced new rules that will allow low-income Medicare Part D prescription drug program beneficiaries to remain enrolled in their current plans instead of facing reassignment at the end of the year. The new rules will be effective May 31, 2008. (Source)
The new rules apply to beneficiaries eligible for the low-income subsidy under Part D. Under the existing rule, beneficiaries in plans that charge no premium are automatically switched to another no-premium plan if their current plan decides to start charging a premium. Switching over may cause disruption in coverage.
Kerry Weems, CMS Acting Administrator, said, “It’s important that we provide stability and predictability in the prescription drug program, particularly for the beneficiaries who receive Medicare’s extra help. By changing the method that we use to determine the benchmarks for the low-income subsidy, we are able to ensure that there will continue to be a wide choice of zero-premium plans available to these beneficiaries.â€
For more information, you may download a PDF copy of the 28-page final regulation.
