What’s new with Medicare? The 2008 premiums and co-pays. What’s not new? They’re going up. Medicare Part A and B changes have been released for 2008 as well as some plan changes for Part D. 

What is most likely to affect beneficiaries in Minnesota are the Part B increases. The Part B premium in Minnesota has increased by 3.4 percent to $96.40/month, up from $93.50 in 2007. The premium is on a sliding scale based on income, going as high as $238.40 for singles who make more than $205,000/year. The deductible in 2008 is $135.

The Part A inpatient deductible will be $1,024 per hospitalization period, up from $992 in 2007. The daily hospital co-pay for in-patients days 61 through 90 increases to $256/day and more than 91 days is $512/day. Outpatient skilled nursing co-pay will rise to $128/day. 

If you or your spouse worked less then 40 work quarters, or do not automatically qualify for Medicare for other reasons, you must buy into Medicare Part A. If the number of your work quarters is under 30, the monthly premium is $423/month. Between 30 and 39, it’s $233/ month. Most people who have worked full time earn four quarters a year.

There are changes in Part D stand-alone plans as well. Deductibles for all plans are between $0 and $275. After $275 in out-of-pocket costs, the plan will pay 75 percent of prescription costs to $2,511. At $2,511 to $5,726.25, beneficiaries will have no coverage from the plan, known as “the donut hole.” After $5,726.25 has been paid out-of-pocket, Part D plans will pay 95 percent of prescription costs, known as “catastrophic coverage.” At catastrophic coverage, beneficiaries pay a $2.25 co-pay for generics and $5.60 co-pay for brand drugs or 5 percent of price of the drug, whichever is more.

If you missed the initial deadline for Part D or want to change your plan, the health programs department will be having counseling events during open enrollment (Nov. 15-Dec. 31). These special counseling days will be Nov. 15, 19 and 28 at Twin Cities locations. Spots are filling up quickly so call the Health Plan Information Center at 651/783-5045 to reserve a time.