Health benefit options changing

Every January, Blue Cross Blue Shield of Michigan makes changes to its plans and options. It’s a good time for members who offer a Blue Cross health plan to review their current options and new ones to see if a change might be better suited to their current situation.

Two big changes in 2006 involve Medicare Part D, which affects those whose plans cover Medicare-eligible individuals, and Health Savings Accounts (HSAs), which are now available to those whose subscriber group consists of a single person.

Medicare Part D, a new prescription drug benefit option for Medicare-eligible people, is “creating a lot of dust,” according to Linda Cook, MRA’s health insurance specialist. Cook’s department is up to speed on the new options and deadlines and can help members who are have medicare-eligible employees sort through various options as they decide what is best.

Below are Cook’s “Frequently Asked Questions” and answers.

1. When does Medicare Part D take effect, and what is the deadline for enrolling? For those who sign up in 2005, coverage becomes effective January 1, 2006. Open enrollment runs from November 15, 2005 until May 15, 2006. Those who have “current creditable coverage” (see question 5) are not restricted by the open enrollment dates and may enroll in Medicare Part D at any time. All participants in MRA’s coverage through Blue Cross have current creditable coverage, so these enrollment dates do not apply.

2. I’m eligible for Medicare Part D coverage. Do I have to sign up for it? No. Medicare Part D is a new option, but it’s not the only option. For some, it will make sense; others may find that their current coverage or another plan will be better.

3. What are other options? Members can stay with current coverage or choose a new option from Blue Cross’s updated menu of plans. One new plan is called Blue Care Advantage, and it is targeted at the same population who might be interested in Medicare Part D.

4. How do I know whether Medicare Part D makes sense for me or my employee? It depends on several factors, such as the insured person’s current prescription plan and the amount he or she spends on prescription drugs each month. MRA can help members sort through these factors.

5. My medicare-eligible employee has asked about the letter I sent her about her current coverage. Can you help me explain what it’s for? Employers with medicare-eligible employees on their health care plan were required by Blue Cross to send these employees a letter if their current coverage is considered “creditable,” which means equal to or better than Medicare. The letter should be saved in case the person wishes to enroll in Medicare Part D after the open enrollment date is past—it will allow enrollment without penalties or higher rates.

For other questions about Medicare Part D or other new health care benefit options, call Cook at 800.366.3699.

Health Savings Accounts
A health savings account (HSA) is a tax-advantaged savings plan available to cover current and future medical expenses. An insured person may put money into an HSA before tax is paid on it and then withdraw the money tax-free for qualified medical expenses.

The health savings account is the new name for the medical savings account (MSA) plans that were offered in the past. What’s new for 2006: now, even groups consisting of only one person are eligible for HSAs.

If you ruled out the HSA option because your group was too small, you may want to reconsider it. Those who do choose this option should be aware participants must select from a set of options offered by Blue Cross, which has partnered with various financial institutions on HSAs.

For more information about HSAs, contact Linda Cook at lcook@retailers.com or 800.366.3699.