At the end of 2007, approximately 500,000 low-income Californians participating in the Medicare Part D drug benefit were re-assigned to a different plan by the Center for Medicare & Medicaid Services (CMS). Because there are often sizeable and important differences among such plans, this change has important implications.

The reassignment was done without regard to the drugs beneficiaries was using or differences in drug coverage — including whether their prescriptions would continue to be covered under the new plan. While the opportunity for higher-income Medicare beneficiaries to switch plans for 2008 ended on December 31, 2007, beneficiaries who are eligible for the full low-income subsidy can change plans throughout the calendar year. These Californians should carefully examine their options and consider whether to enroll in a different plan based on their specific drug needs before deciding what is best for them.

This fact sheet explains the mechanics of the Medicare drug benefit for low-income beneficiaries and details the premium subsidies that are available to those who qualify. It also examines the key variations among the plans that are eligible for such subsidies, such as the inclusion of brand-name drugs versus generics and coverage for the 100 most commonly used drugs.

The complete fact sheet is available as a Document Download.