2005 Aarp Plan J That Included a Drug Plan Question

[finleyh]

I got a call from a husband and wife who had an AARP Plan J that the husband and wife insist includes a drug plan that covers a total of $6k a year in rx benefits. A couple of questions:
1. Does anyone remember this product?
2. If it did exist and is not some reference to a prescript benefit can they switch supplements and enroll in another rx plan outside of the normal nov 15 to end of year deadline?
They are paying $600 a year for this package deal and can get 2 Plan F's for $290. Any (accurate) guidance would be appreciated.

 

[allhealthandlife]

I got a call from a husband and wife who had an AARP Plan J that the husband and wife insist includes a drug plan that covers a total of $6k a year in rx benefits. A couple of questions:
1. Does anyone remember this product?
2. If it did exist and is not some reference to a prescript benefit can they switch supplements and enroll in another rx plan outside of the normal nov 15 to end of year deadline?
They are paying $600 a year for this package deal and can get 2 Plan F's for $290. Any (accurate) guidance would be appreciated.

Drug coverage was stripped out of plan J when Part D was rolled out in 2006. These people are misinformed and are in for a rude awakening when they have to pay a late enrollment penalty for part D.They may be getting discounts on rx now because they are an AARP member.I have seen this before where a prospects swear they have " AARP drug coverage " when it's only really a discount card.

 

[DS4]

I got a call from a husband and wife who had an AARP Plan J that the husband and wife insist includes a drug plan that covers a total of $6k a year in rx benefits. A couple of questions:
1. Does anyone remember this product?
2. If it did exist and is not some reference to a prescript benefit can they switch supplements and enroll in another rx plan outside of the normal nov 15 to end of year deadline?
They are paying $600 a year for this package deal and can get 2 Plan F's for $290. Any (accurate) guidance would be appreciated.

1)Yes. I still have clients on Plan J.
2)They could enroll in F now but not a PDP until Jan 1st
I think you meant $600/month??

Drug coverage was stripped out of plan J when Part D was rolled out in 2006. These people are misinformed and are in for a rude awakening when they have to pay a late enrollment penalty for part D.They may be getting discounts on rx now because they are an AARP member.I have seen this before where a prospects swear they have " AARP drug coverage " when it's only really a discount card.

ONLY IF insured requested Plan J w/o Rx.
When Part D rolled out, insureds with embedded Rx coverage had 2 options with their current carrier. Continue their current Plan J(not creditable), or, change to a hybrid Plan J w/o Rx coverage and enroll in a Part D card.
Plan J w/Rx has a 250 deductible , 50%, $3000 max cal yr benefit.

 

[finleyh]

DS4,
It is definitely $600 a month and the couple did say they had $6k a year in rx benefits attached to their plan J. If they switch to a plan F can they maintain their current drug coverage or do they have to just wait until next year?

 

[DS4]

the couple did say they had $6k a year in rx benefits attached to their plan J.

After the 250 deduct, 50% of $6000. $3000 max benefit. They are confused. Or, $6000 in max cal yr benefits combined.

If they switch to a plan F can they maintain their current drug coverage or do they have to just wait until next year?

No. Their current Rx coverage is embedded. If they changed to F now, they would have no Rx coverage until Jan 1st. Change them to F and a PDP Jan 1st.

 

[Frank Stastny]

After the 250 deduct, 50% of $6000. $3000 max benefit. They are confused. Or, $6000 in max cal yr benefits combined.



No. Their current Rx coverage is embedded. If they changed to F now, they would have no Rx coverage until Jan 1st. Change them to F and a PDP Jan 1st.

Just another example of someone who thinks they know more about Medicare and Med Supps than an agent and made that decision all on their very own. Everyone knows that insurance agents only exist to screw prospects and the wonderful AARP is their to "help" and "protect" them. Long live AARP, they make us successful.

And people think that there is no value in having an agent. They made their bed, I hope they sleep well.

 

[finleyh]

Last question.
If they hit their $3k limit or did by ordering a 3 month supply could they then drop there current plan? I spoke to the wife again and she says that they are actually spending $800 a month per year so they must be running out of their $3k limit. If one is already at the $3k limit I can't see any good reason for them not to change. The 1% monthly penalty for a couple of months is nothing compared to the penalty of having aarp.

 

[DS4]

If they have each hit their $3000 max, might as well go to F now. Also, Plan J is not creditable. If they both enroll in a Part D card Jan 1st, they each will have a +54% penalty.

 

[G.Gordon]

Last question.
If they hit their $3k limit or did by ordering a 3 month supply could they then drop there current plan? I spoke to the wife again and she says that they are actually spending $800 a month per year so they must be running out of their $3k limit. If one is already at the $3k limit I can't see any good reason for them not to change. The 1% monthly penalty for a couple of months is nothing compared to the penalty of having aarp.

Yes move them. If their limit is used up for this year they have nothing to stay on the higher premium plan for. They can use that money from Rx. They will have a penalty of more than $15/mo when they do sign up for a plan 1/1/11.