This is the January 14, 2008, issue of Elder Law FAX, a free newsletter published by the Elder Law Practice of Timothy L. Takacs   Another Medicare Option: Special Needs Plans Over four years ago Congress enacted the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. Most widely known as adding the voluntary prescription drug benefit to Medicare - "Medicare Part D" - the new law also added Medicare Advantage Special Needs Plans.   Entirely unrelated to Medicaid and SSI "special needs trusts," Medicare's Special Needs Plans were added to encourage Medicare's health plans to develop targeted programs to more effectively care for high-risk beneficiaries.   Congress authorized Medicare Advantage health plans to limit enrollment to one of three special needs populations: beneficiaries dually eligible for Medicare and Medicaid, institutional beneficiaries, and those suffering from severe or disabling chronic conditions.   Since the program began, the number of Special Needs Plans and enrollment has grown to over 477 plans with more than 1 million enrollees. Authorization of the program sunsets December 31, 2008, however, and Congress will need to reauthorize the program for it continue.   What value do Special Needs Plans offer to these populations and how can these plans meet their unique needs?   A recently released report suggests that Medicare Advantage Special Needs Plans can improve health care and reduce cost, provided that plan benefits are tailored to meet the specific needs of this high-risk population.   Commissioned by the Association for Community Affiliated Plans and released by Avalere Health, the report looks at six not-for-profit Medicare managed care health plans across the country that entered the Special Needs Plan insurance market over the last two years.    Some of the tailored services provided by these health plans include: Assignment of patient navigators who are dedicated to helping coordinate the complexities of Medicare and Medicaid benefits, Deployment of intensive, high-touch medical case management programs for those at highest clinical risk, Linking members to key community and social resources to address the non-medical stressors caused by poverty that often lead to poor health outcomes and increased healthcare costs if left unaddressed, and Enhanced benefit designs that help cover dental care or other services that neither Medicaid nor Medicare cover but can contribute to decreased health. According to the report, many Special Needs Plans believe that by improving high-risk Medicare beneficiaries access to care and increasing quality, costs to Medicare will decline and they will reduce or delay the need for Medicaid long-term care services.   Last month, the Medicare Payment Advisory Commission (MedPAC), which advises Congress on Medicare issues, recommended that Congress extend the statutory authority to enroll beneficiaries in Special Needs Plans for another three years.   "Medicare Advantage Special Needs Plans/Six Plans' Experience with Targeted Care Models to Improve Dual Eligible Beneficiaries' Health and Outcomes" was authored by Ellen Lukens, Lisa Murphy, and Jon Blum, all of Avalere Health.