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October 2005

NEWSLETTER OCTOBER 2005

MEDICARE INFORMATION:
At last count CMS has approved about 389 different PDP's or Advantage programs for the new Medicare Modernization Act (MMA) starting January 1st, 2006. This alone gives you enough reason to be part of a Managed Care Program.

AmerisourceBergen Customers use PPN as their managed care program.
Cardinal customers use the Leadernet program.
Also available and endorsed by Keystone are the EPN & United Networks.

These are all excellent programs and each has been endorsed by Keystone.

For information on joining, call our office or talk to your wholesaler representative. Each of the plans have been very careful in approving & not approving certain plans and as a member of these Managed Care plans, you do not have to read these complicated contracts and they automatically enroll you in the approved plans. You, of course, still have the ability to sign on to any plan they do not approve.

PACE program in Pennsylvania: We have been unofficially told the following. Pa. PACE is going to provide an excellent wrap around benefit; PACE will cover all costs not picked up by the PDP (First Health Plan) except for the $6 co-payment. PACE is only going to auto assign its members who qualify for the Low Income Subsidy (LIS) into a PDP. For those who do not qualify for LIS, there is NO INCENTIVE for them to join a Medicare PDP ­ PACE & PACENET are better plans than those offered under Medicare Part D. Bottom Line ­ PACE members need to do nothing.

If a recipient is now receiving Medicaid or SSI ­ they will also be auto assigned if they do nothing.

Answers to the most commonly asked questions:
1. If Medicaid is presently paying for their prescription: On January 1, 2006, your prescription benefits will be under Medicare Part D. They must choose a Part D PDP, or Medicare will choose one for them. Those recipients in a Medicaid HMO will be contacted by their plan with their offers. The recipient can then stay with their present HMO or switch to another if they feel it offers a better plan for them personally.
2. If a patient is receiving Supplemental Security Income (SSI): They will be covered by Medicare Part D. They have until May 15, 2006 to choose a plan or one will be assigned.
3. Medigap Members: They can choose another Medigap plan that does not offer drugs and sign up for drugs with a Part D Plan. They can drop their Medigaps plan Rx coverage and sign up for Part D. They can keep their Medigap plan with Rx coverage, but as Medigap drug coverage will probably be phased out they may be subject to a late-enrollment penalty if they go back to Part D at a later time.
If they are part of a Medigap Plan that does not offer drugs, then they can sign up for Medicare Part D if they feel it is beneficial.
4. If they are getting help paying for drugs from a former employee or union: The former employee or union will be letting them know how Medicare Part D will work with their coverage. To keep these plans active, the Federal Government is offering to pay 28% of the employer or union costs so it is hoped that these people will have to do nothing.
5. If you are receiving prescriptions from the VA: Do nothing, your VA benefits will remain the same.
6. Low Income Subsidies (LIS) General Guidelines:
Single: Income less than $14,355 and assets less than $10,000
Couple: Income less than $19,245 and assets less than $20,000
Assets do not include the value of your home, car, certain earned income or certain property related to burial expenses. If not sure, it pays to apply for the Low Income Subsidy. This is managed by the Social Security Administration. Apply at their offices, call 800-772-1213 or go to www.socialsecurity.gov. A copy of the LIS application is attached ­ feel free to copy and give to your patients.

 

KEYSTONE NEWS:

Contract proposals for 2006 are in hand and will be voted on by the Keystone Board in the end of November. Many of the contracts have been embellished by the Vendors because of strong participation and competition in certain categories is very exciting.

LEGISLATION:

You have been requested by all Pennsylvania Pharmacy Organizations in the State to get involved and contact your legislators about the "One Pennsylvania Act" which are in both the Pennsylvania House and Senate. THIS IS VERY IMPORTANT!!!! GET INVOLVED!!!!!

Nationally, there are those in Washington that are pushing to have AWP replaced with AMP in all federally funded Medicaid Plans which would be devastating to Pharmacy. In many, many cases AMP would be lower than you can purchase a drug because it averages the prices charged to Retail with those prices charged to Mail Order, LTC, Hospitals as well as SB340 pricing. We have to educate our Federal Legislators ­ GET INVOLVED!!!!

 

Please remember:
Keystone & the PARD share the same offices. If you have a question, please call. We have worked for Independent Pharmacy in the past & will continue to do everything possible in the future. Ideas and suggestions by our membership are appreciated.

 

COMPLIANCE IS THE KEY IN KEYSTONE!!!!!!!

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