Understanding the New Medicare Prescription Drug Plan

What is the Medicare Prescription Drug Plan?

Medicare is adding coverage for prescription medicines. This means that people who have Medicare Part A (hospital insurance) or Medicare Part B (medical insurance) will be able to get insurance to pay for part of their prescription drugs. Medicare is working with insurance companies to offer this benefit. It is available no matter what your income, illnesses, or drug costs.

When can I sign up?

You can sign up between November 15, 2005 and May 15, 2006. If you join after May 15, you will have to pay more.

How will the Medicare drug plans be different?

Because private companies are setting up the plans for Medicare, each plan will be a bit different. Some may use only certain pharmacies and others may cover only certain drugs. The cost also may vary. It is important to pick one that meets your needs.

How do I choose a plan?

On October 13, Medicare will give you information so you can compare the plans. You can get this info at www.medicare.gov or 1-800-MEDICARE (1-800-633-4226). You will also get a handbook called Medicare & You in the mail.

How much will this insurance cost?

The monthly fee will be about $32. There will also be a $250 deductible each year. You will need to pay this amount before Medicare starts helping with your drug bills. You will also pay a small co-pay for each drug.

Does this insurance pay for all of my drug costs each year?

No. After you pay the deductible, Medicare will pay 75% of all drug costs, up to $2,250. Then there is a gap in coverage some people call it the donut hole. What this means is that when your total drug costs reach $2,250, you will need to pay the next $2,850 yourself until you reach $3,600. After $3,600, Medicare will pay 95% of your drug costs.

What if I have a Medigap policy now?

If you get drug coverage through Medigap, you will get information from your insurance company. This information will help you decide what to do.

What if I already have drug coverage through my employer or union?

You will get information from your employer or union that tells you if your current plan covers less, the same, or more than Medicare drug insurance will cover. If your current plan covers less than Medicare, you can:

• Keep your current plan AND join a Medicare plan for complete coverage.
• Keep your current plan. (However, if you join Medicare later, you will have to pay more.)
• Drop your current plan and join a Medicare plan. (However, you may not be able to get your current plan back.)

If your current plan covers the same as or more than Medicare, you can:

• Keep your current plan. (If you join Medicare later, you won’t have to pay more.)
• Drop your current plan and join a Medicare plan. (However, you may not be able to get your current plan back.)

Source: RefillPill.com Editors' Choice