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2004

Health savings accounts - Beginning January 1, pre-retirement age workers who have health insurance plans with high deductibles may set aside up to $2,250 ($4,500 for families) annually in tax-free accounts to cover health care costs. Withdrawals for non-medical purposes are taxable.

Prescription-drug cards - Starting in the second quarter of 2004, seniors begin paying up to $30 for a drug discount card. Although the Bush administration claims it will save users 15% to 25% per prescription, most drug companies like Pfizer and Novartis already offer senior discount cards at 30-40% savings. Watch for these companies to announce a 'reevaluation' of the popular discount cards once the new plan is enacted.

(Editor's note: As predicted, Pfizer has now suspended their discount card as of August 31, 2004.)

2007

For the first time, Medicare begins adjusting its monthly premium for doctor visits and other outpatient care based on income. Instead of paying the standard premium of 25%, seniors with incomes of $80,000 or more start paying a higher portion for coverage of doctors’ visits — up to 80% for those with incomes above $200,000.

2010

Medicare begins competition between private health plans and the government. The experiment involves up to 2 million seniors in six metropolitan areas for six years. Some seniors might have to pay 5% more a year to stay in Medicare if private insurers offer cheaper coverage. Proponents say it creates competition that will be good for Medicare, while opponents say it will lead to further privatization, spiraling costs and the end of Medicare as it now exists.

More resources to the new Medicare Plan around the Web:

Medicare.gov
Medicare Rights Center
Suddenly Senior
How to Find Medicare Information
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