[Hilary]

CMS released on August 13, 2007 information about Part D low-income benchmark premiums and Part D plan reassignment from plans with 2008 premiums that exceed the applicable low-income benchmark by more than $1. It is important to note that CMS states in the Memorandum that 1/6 of Extra Help enrollees, or one-and-a-half million Extra Help beneficiaries, must be reassigned to different Part D plans for 2008 in order to continue to have their premiums fully subsidized. Under the de minimus policy for 2008, plans that raise the premium less than $1.00 over the regional low-income benchmark figure are not permitted to charge Extra Help beneficiaries any premium each month. Note that in 2007 the de minimus threshold was $2.00.

In 2008, plans that raise the monthly premium to more than $1.00 over the low income regional benchmark must charge Extra Help beneficiaries who choose not to switch into a low income benchmark plan a premium equal to the low income benchmark premium for the region. Remember that because these Extra Help beneficiaries who choose to remain in their current plan in 2008 will be required to pay a small portion of the plan premium, we’ll all need to consider the factors you can help beneficiaries to consider as they decide whether to stay in their plan or switch to a different plan with a lower monthly premium.