1 Medicare Part D Low Income Subsidies Operational Issues
2 Low-Income Subsidies Federal government will subsidize low-income beneficiaries for all or part of their premiums, deductibles, and copays. Dual eligibles will be automatically enrolled in LIS at same time as auto-enrollment in Drug Plan SSI auto-enrolled in LIS if Medicare eligible MSP eligibles will either be automatically enrolled in LIS at time of plan selection or at same time as facilitated enrollment in Drug Plan, whichever comes first Others may be eligible as well
3 LIS & Institutionalized CMS includes nursing homes, ICF-MR and Residential Psychiatric Treatment as Institutions, along with others. Medicare consumers in institutions automatically qualify for LIS Their LIS covers all Part D costs for the lowest cost plan: Premiums, deductibles, copays, coverage gap.
4 Enrollment Dual eligibles and Medicare Savings Plan beneficiaries will automatically be enrolled in one of the lowest cost plans in their region if they do not select a plan
5 Enrollment Group 1: Full benefit dually eligible with incomes at or below 100% of the federal poverty level Group 2: Full-benefit dual eligibles above 100% of the federal poverty level; QMB, SLMB,QI, SSI-only, or non-dual eligible beneficiaries with incomes below 135% of the federal poverty level and limited resources ($6,000 per individual and $9,000 per married couple)
6 Enrollment Group 3:beneficiaries with incomes below 150% of the federal poverty level and limited resources.
7 Eligibility for Extra Help Income: Below150% of Federal Poverty Level in 2005 $1,197 per month ($14,355/yr) for an individual or $1,604 per month ($19,245/yr) for a married couple Based on Family Size
8 Eligibility for Extra Help Resources Up to $11,500 for an individual Up to $23,000 for a married couple living together Includes $1,500 for burial expenses or funeral Counts savings and stocks Does not count the home the individual or couple lives in
9 Automatic Enrollment If Dual Eligibles already in a Medicare Advantage Plan for physical health, they will be enrolled in a Medicare Advantage Drug Plan if one is available Dual eligibles can choose a plan before January limited to one of the low cost plans Dual eligibles can change plans as often as once per month.
10 Facilitated Enrollment MSP participants & SSI+Medicare eligibles can choose a plan. If they do not choose one by May 15, 2006, they will be auto-enrolled into both a low-cost plan and the low-income subsidy.
11 Applying for Low-Income Subsidies Through federal Social Security Administration (www. or or Local SS office NOW. Through state Medicaid office NOW NOW
12 State Assistance Some states/districts have a state pharmacy assistance program for low-income consumers. State/District Medicaid programs can choose to provide some wraparound benefits to the Part D benefit.
13 Affected Groups Many of those eligible for LIS may have been receiving other types of assistance with their meds, including samples and PAPs. This will likely change to take advantage of Part D. Medicare Part D may cost them more Not clear how each state or provider will handle clients who are eligible but choose not to apply.
14 Low Income Subsidy Group 1 Group 2 Group 3 Premium $37/mo Deductible $250/yr Coinsurance OOP $3,600 $0 $0 Sliding scale base on income $0 $0 $50 $1/$3 copay
15 6.5 million dual eligibles Have been receiving medications through Medicaid. Have been able in many states to get medications even if they could not pay a copay Have generally had access to a broad formulary or list of drugs with few restrictions or approval mechanisms
16 Dual Eligibles Lose Most Medicaid Prescription Benefits* As of January 1, 2006, dual eligibles will lose Medicaid presription benefits* They will be automatically enrolled into a Drug Plan with all its rules and limitations May not have access to all the drugs they did before May have restrictions or costs associated with their drugs.
17 Dual Eligibles Are Vulnerable: Use 3X more medication $ than consumers with Medicaid alone Lower incomes Sicker (Physically & Behaviorally) Fewer family or other supports More likely to be minority, female and live in rural areas
18 Key Issues for Dual Eligible Plan Selection Are their medications (physical and behavioral) on the formulary? What benefit management controls does each drug plan use? What pharmacies does each drug plan use? What copays are associated with their preferred drugs?
19 Dual Eligibles Very Tight Timeline: Drug Plans Known in October, Prescription Coverage Changes January 1, Drug Plans required to have transition plans for these consumers, but they may not be sufficient. Not required to do one-time fills or maintain consumer on current medication. Consumer dually eligibles can change plans up to once per month
20 Medicare Savings Plan Can choose a Drug Plan; will automatically be enrolled in LIS at that time. If do not choose Drug Plan, will be enrolled in both a low-cost Drug Plan and LIS no later than May 2006.
21 Medicare Only Low Income can apply for LIS; does not commit them to choosing a Drug Plan Can enroll anytime between November 15, 2005 and May 15, If they choose to enroll in Drug Plan after May 15, 2006, premiums will be permanently higher. Can change plans once per year.
22 Issues Consumers Might Face Awareness that change affects them Not understanding they will lose most Medicaid drug coverage January 1, 2006 Besieged by marketing materials from Drug Plans Not getting, keeping or understanding the mail they get Outreach material not understandable language or culture or both
23 Issues Consumers Might Face Not knowing how to evaluate plans Not understanding a formulary Financial Issues Confusion about premiums Confusion about copays Confusion about the Low-Income Subsidy Not understanding other management tools and how they will impact them. What pharmacies can they go to get their meds? Does this mean they need to change doctors? Signing up for Medicare Advantage along with a Part D plan
24 Issues Consumers Might Face Transitional Issues Unable to access doctor or other prescriber help in a timely manner Timing problems; data issues they are not on the right list Lack of bridge medications Changes in pharmacies Lack of coordination between the consumer s other prescribers.
25 Issues Consumers Might Face Post-Enrollment Issues Involuntary disenrollment Appeals Grievances Continuing communication about formulary changes Inpatient meds not on formulary or not affordable. After year 1, all psychotropic meds not required to be on formularies.
26 Possible Provider Impacts: Near and Long Term Increased demand for physician/prescriber appointments to assist with medication transitions or appeals due to formulary limitations. Decreases in case management, prescriber and corresponding revenues as staff respond to transition assistance requests from consumers and provide services that cannot be billed. High volume of crisis calls and increased demand for emergency services related to medication compliance or medication changes.
27 Possible Provider Impacts: Near and Long Term Increased hospitalization rates for transitioning consumers, resulting in reduced productivity/billing for outpatient services and/or poor performance on any contracts with incentives for inpatient utilization. Reduced availability of indigent drug programs and samples as pharmaceutical companies restrict access for Medicare consumers.
28 Operational Issues for Providers Prior to January 1, 2006
29 Staged Implementation Educate an implementation team determine role of provider Train Staff Analyze Plans and provide staff/consumer resources Identify Consumers Implement Consumer workplan Monitor transitional issues Implement post-january 1 workplan
30 Organizational Approach Top Level Responsible: appoint an implementation manager Interdisciplinary Implementation Team Immediate and ongoing issues Workplan Identification of resources and resource needs Resource Teams or Specialists: the consultants may be a part of the Implementation Team. Library: Paper-based Government produced information for consumers/providers Access to web based resources: drug plan formularies; government sites.
31 Organizational Approach Procedures & Processes: Provider must take on: Prescriber roles: assisting in management of drugs; coordination with other providers; role in appeals. Prescriber continued readiness re: changes to formularies Prescriber attention to benefit management tools that affect their clients. Provider can take on: Assistance with analysis and choice of plan Legal agent for client in choosing plan and/or in initiating appeals Managing database of client choices Assisting in communication of changes Managing/tracking appeals
32 Organizational Roles for Prescribers/Clinical Managers Leadership Outreach priorities: which clients first Retooling schedules: making sure visits happen before Jan 1, 2006 Tx Plan changes: more med education; more attention by case managers Educate other staff: you know medications they don t.
33 Prioritizing Most Vulnerable Dual Eligibles Hospital to Community Transitions Newer, brand name drugs Multiple previous failures on prior drugs Many physical health issues as well as complex psychiatric medication issues
34 What needs to be done now? Organization should supply staff with the formulary information needed in an easily accessible form so designated staff can assist clients with plan selection. Organization needs to know the eligibility status of each of its consumers. Look at their cards, do not assume based on current medical record information. Have your consumers bring in their mail and help them to interpret it.
35 What needs to be done now? Organization needs to know the complete list of all meds (physical and psychiatric) that consumer takes look at the bottles and transcribe for accuracy. Which drugs are not covered by Part D? Where does the consumer need to get these? How will injectables be handled? Will the consumer purchase and bring to the clinic? Complete a plan analysis form with them.
36 What needs to be done now? Once the formularies are out get priority clients an appointment with their prescriber. Assess need for appointment/coordination with others.
37 What needs to be done now? Information about eligibility and meds needs to be in the medical record so that all treatment team can access it. Assist with applications for low income subsidies as soon as possible. Make sure every client knows where their pharmacy is. Help to calm consumer fears about the change.
38 Cautions with Assisting CMS-defined allowable provider issues for enrolling consumers Be clear about what is billable and not Consistent information and processes internally Acting on behalf of the consumer
39 Operational Issues for Providers After January 1, 2006
40 Ongoing Issues for Prescribers Appeals and Grievances Formulary Review Drug Plan Changes: benefit management Samples and patient assistance management Medication Education & Management Practice Patterns
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