Extension to the Suspension of Sequestration for the Retiree Drug Subsidy Program
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The Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), enacted on March 27, 2020, temporarily suspends sequestration of Medicare programs between May 1, 2020 and December 31, 2020. As a result, the calculated Subsidy Amount for final costs incurred within the sequestration suspension period will be exempt from the two percent sequestration reduction when those months' costs are reconciled and final payment is requested; allowing Plan Sponsors to even further increase their subsidy payments.
This Mandatory Payment Reduction in CMS Payments has resulted in a 2% sequestration reduction from all final cost reports since April 2013. Starting in March 2020, through the initial provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the RDS has suspended the 2% sequestration reduction for costs incurred from May 1, 2020 - December 31, 2020 to temporarily increase subsidy payments to plan sponsors. Now, through the Consolidated Appropriations Act, enacted on December 27, 2020, the suspension of the 2% sequestration reduction will be continued until March 31, 2021.
The temporary sequestration suspension indicated by the Consolidated Appropriations Act, 2021 applies only to the costs incurred between May 1, 2020 and March 31, 2021, regardless of when an application reconciled. Please note that this temporary fee suspension is not based on an application's Reconciliation Deadline Date, nor the date that the Plan Sponsor completes Reconciliation for an application. January 2020 reconciliation deadline is March 31, 2022.
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Evaluate Your Plan: Here's What Medicare Part D
Costs & Covers in 2021
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When it comes to Medicare coverage, there are plenty of choices. You can opt for original Medicare, which gives you hospital coverage under Part A and outpatient coverage under Part B, and sign up for a Part D plan to go with it. There is also the option of enrolling in a Medicare Advantage plan instead which are often offered by private insurers and are required to provide at least the same level of coverage as original Medicare. These Advantage plans offer added benefits, like coverage for dental care, eye exams, hearing aids, and supplemental benefits.
If you are finding yourself unhappy with your health coverage, there's good news - you're not stuck with it all year. Medicare Advantage has an open enrollment period that runs from January 1 , 2021 - March 31, 2021. This period allows you to drop or switch over types of coverage based on your needs. If you do choose to sign up for an original Medicare plan, it's important to note that you will also need to sign up for a Part D drug plan to ensure prescription coverage. However, Medicare Advantage Plans are all-encompassing and will include coverage for prescriptions automatically.
Getting different coverage could make sense if you're not happy with your choice of providers or pharmacies, or if certain expenses are costing you more than anticipated. One important note is that you are only allowed to make one change during Medicare Advantage's open enrollment period. If you ae going to move to another Advantage Plan, research it carefully. You should read up on the costs and benefits it provides as well as the coverage it offers for your specific medications. Switching plans could be a smart decision that saves you money on healthcare and spares you a world of stress.
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1. Assess Your Coverage During Open Enrollment
Medicare's open enrollment period runs from October 15 - December 7 each year. While Medicare Advantage open enrollment is from January 1 - March 31 each year.
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2. Pay Attention to Your Special Enrollment Period
Your initial window to sign up for Medicare spans 7 months beginning 3 months before your 65th birthday and ending 3 months later.
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3. Use Medicare's Free Services
There are some important services you're entitled to at no cost under Medicare, be sure you are fully reaping the benefits of these services.
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(plan year end | recon. due date)
10/2019 | 02/01/2021
11/2019 | 03/01/2021
12/2019 | 03/31/2021
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(plan year start | app. due date)
05/01/2021 | 02/01/2021
06/01/2021 | 03/02/2021
07/01/2021 | 04/01/2021
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