FOR IMMEDIATE RELEASE

November 13, 2008

Department of Insurance Announces Open Enrollment for Medicare Prescription Drug Coverage Runs November 15 Through December 31

Open enrollment for Medicare Part D Prescription Drug Coverage is Nov. 15 - Dec. 31, 2008. The Senior Health Insurance Information Program (SHIIP) staff at the Department of Insurance is available to help Louisiana Medicare beneficiaries enroll in one of a large number of Louisiana Medicare Stand-Alone Rx plans available in 2009. SHIIP staff can also assist in comparing Medicare Advantage Plans. Beneficiaries are encouraged to enroll or make changes to their present coverage by December 8 to ensure that they will be able to get their prescriptions on January 1, according to Commissioner of Insurance Jim Donelon.

Before selecting a prescription drug plan or changing your coverage, the Department of Insurance suggests you review the following information:

What are Medicare prescription drug plans?

In 2003, the federal government enacted a Medicare prescription drug benefit for Medicare beneficiaries. Private insurance companies sell Medicare Prescription Drug Plans (PDPs) or Medicare Advantage plans approved by Medicare. Everyone with Medicare is eligible to enroll in Medicare prescription drug coverage, regardless of income or assets, and coverage is voluntary.

What if I am already enrolled in a Medicare prescription drug plan?

Plan features might change from year to year so carefully examine all available plans during each annual enrollment period because your current plan may no longer best meet your needs. Be sure to check the features of your plan, including the list of drugs covered, the premium, deductible and cost-sharing you pay, and any coverage gap. If you are satisfied with your current plan, you do not need to do anything to keep your plan. If you take no action, you will remain in your current plan. If you enroll in or make changes to your plan during the annual enrollment period, your new coverage automatically begins Jan. 1, 2009.

What if I am enrolled in a Medicare Advantage Plan with prescription drug coverage?

Medicare Advantage plans might also make changes to important features of your plan from year to year including the list of drugs covered, the premium you pay, deductibles and cost-sharing requirements, and provider networks. Carefully review your plan options during each open enrollment season. If you take no action, you will automatically remain in your current plan.

What if I already have prescription drug coverage?

A Medicare prescription drug plan might provide more coverage than a Medicare supplement insurance (Medigap) policy or employer-provided prescription drug coverage that you may currently have. If Medicare considers your existing coverage to be “creditable” – meaning, coverage that is as good as the standard Medicare prescription drug coverage benefit – you are permitted to keep your current coverage without incurring future penalties. Check with your employer or Medigap plan before dropping an employer-provided prescription drug coverage or Medigap plan because you may not be able to get it back. If you do not enroll in a Medicare drug plan when you are first eligible for Medicare, and you don’t have other creditable prescription drug coverage, you may be subject to a penalty if you decide to enroll at a later time.

What are my options if I want to enroll in a Medicare prescription drug plan?

You can enroll in a stand-alone prescription drug plan (Medicare Part D) or you can choose a Medicare Advantage plan (Medicare Part C) that includes a drug benefit.

Compare plans and select the one that best meets your individual needs annually. Here are a few things to consider:

1. See if all of your prescriptions are on the plan’s list of drugs (called a formulary).

2. Check to see if your preferred pharmacy is on the list.

3. Find out what co-payments you will be responsible for paying when filling a prescription.

4. Are the premium, deductible and cost-sharing requirements for your preferred plan affordable?

5. Is there a coverage gap where you are responsible for all of the costs, and is this affordable?

6. If it is a Medicare Advantage plan, what are the network rules and will your current providers be covered?

7. How does enrollment in the new plan impact coverage you may already have (including employer-sponsored prescription drug coverage or a Medigap plan) or your enrollment in traditional Medicare?

New Marketing Rules

Beginning Oct. 1, 2008, new federal rules were put in place to protect consumers against abuses in the marketing and sales of Medicare prescription drug plans and Medicare Advantage plans. According to these new rules, individuals who contact you about any type of private Medicare coverage:

1. Must be licensed by the state. Check with the Louisiana Department of Insurance to make sure the salesperson is a licensed agent by calling 1-800-259-5300.

2. May not make unsolicited contacts with prospective beneficiaries, such as door-to-door sales, cold calls or approaching you in a parking lot.

3. Must have an appointment in advance before coming to your home.

4. Must arrange with you in advance the type of products that will be discussed during a scheduled sales appointment. At the appointment, the salesperson may not try to sell you other types of insurance coverage other than the type(s) agreed upon in advance.

5. May not try to sell you non-health care related products (like a life insurance policy or an annuity) during a sales or marketing presentation of a Medicare prescription drug or Medicare Advantage plan.

6. May not attempt to sell you a plan in certain health care settings, such as in a doctor’s office or in a pharmacy.

7. May not attempt to sell you a plan at an educational event.

8. May not offer you free meals at promotional or sales events.

9. May not offer you gifts or other promotional items whose value is in excess of $15.