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A New Medicare for 2006

Starting January 1, 2006, everyone with Medicare will be eligible for prescription drug coverage. The good news is nearly everyone with Medicare stands to benefit by the program now or in the future, regardless of which plan they choose. But those who take the time to understand the important differences between the plans will benefit the most.

The Basics

Medicare prescription drug coverage is insurance. Private companies provide the coverage and it’s up to you to choose the plan that is best for your unique set of circumstances.

• Everyone with Medicare is eligible to join a drug plan to get this coverage, regardless of income level
• Everyone with Medicare must make a decision about their drug coverage; failure to do so could result in a penalty fee
• If you already have prescription coverage with an employer, union, Medicare supplement, Medicare Advantage Plan or other source, you can choose to keep your current coverage
• For those who need it most, extra financial help is available to pay for drug plan costs

Cost

In 2006, most plans will have a premium of about $32. Under the standard plan, you pay the first $250 in drug costs each year (called a deductible), and the plan pays 75% of the next $2000. Once you have paid a total of $3600 out-of-pocket, the standard plan will cover 95% of your costs.

Prescription Drugs

All Medicare prescription drug plans will cover both brand-name and generic drugs.

Even if you don’t use a lot of prescription drugs now, you should still consider joining a Medicare drug plan. As we age, most people will need prescription drugs to stay healthy, and the number of prescription drugs we take today can increase dramatically tomorrow. Medicare’s new prescription drug coverage will protect you and your family against high, unexpected costs.

Dates to Remember

• Enrollment begins on November 15, 2005
• Coverage begins on January 1, 2006
• The last day to enroll without paying a penalty is May 15, 2006

Medicare Part D is very detailed and can be confusing, but personalized help is available. Attend one of several free seminars Medicare Oklahoma is offering or call (405)607-0058 for assistance.