Enrollment for the new Medicare Part D drug benefit is underway, and already a few things are clear. The choices among plans are complex and require careful study. But for many people, the new plans offer a valuable benefit that’s worth the effort. Here are a few basics to get you started.
What is Medicare part D?
The new drug benefit consists of a series of plans, offered by private insurers but approved by Medicare. Some cover prescription drug costs only. Others provide a range of managed care services. You must be Medicare-eligible to enroll.
What benefits are offered?
For the drug plans, you’ll pay a monthly premium, a yearly deductible, and some portion of your drug costs. Each plan differs in cost and benefits provided. Not all prescription drugs are covered by every plan, so you’ll need to check for the specific medications you take.
When must I sign up?
You can enroll any time between November 15 and May 15 next year. After that there will be a penalty for enrolling late. If you sign up by December 31, your coverage will start on January 1.
What is the low-income subsidy?
The federal government will subsidize costs for low-income applicants. You might qualify for a subsidy if your monthly income is below $1,604 for married couples ($1,197 for singles).
Cautions
If you’re already in a retiree plan or another health plan, make sure you won’t lose that coverage if you sign up for one of these new plans. Also, beware of scams. There are reports of bogus plans being offered, and fraudsters trying to trick applicants into divulging their financial information.
The bottom line
Do your homework carefully. Seek advice from Medicare, your state insurance office, or seniors' organizations such as the AARP. Read and compare information from the various plans.
Don’t let yourself be rushed into a decision. Review your choice with family, friends, or a trusted advisor before you commit to a plan.
More Information on Medicare D
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