Choosing a prescription drug plan

Choosing the right prescription drug plan for your unique circumstances will take some effort, but it doesn’t have to be overwhelming. Before comparing plans, take the time to answer the following questions. Knowing this information will allow you to ask the right questions when the time comes to make a decision.

What medications are you currently taking?

Seniors on Medicare should go to their pharmacy and get a printout of all the medications they have purchased over the past year, or longer if possible. It will only take a few minutes for them to find your information and print it.

Take a quick look in your medicine cabinet and write down any medications that don’t appear on the pharmacist’s list, and make an appointment to review this information with your doctor. Ask your doctor to add to your list any possible future medications.

What kind of coverage do you have now?

Approximately 11.4 million people with Medicare currently get drug coverage through an employer or union plan. If you already have prescription drug coverage, watch the mail for information from your current provider, they are required to let you know if the coverage you currently have is at least as good as the standard Medicare prescription drug coverage. If you do not hear from them, visit their website or call your benefits administrator.

Which local pharmacy is your first choice for filling prescriptions? Second choice?

Make sure the plan you choose will allow you to continue going to your regular pharmacy, or at least a viable alternate close to home.

On average, how much money do you spend each year on prescription drugs?

In 2006, most plans will have a premium of about $32 and offer an array of cost-sharing options. Under the standard plan, you pay the first $250 in drug costs each year, and the plan will pay 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.

The plan that is right for you will depend in large part on how much you rely on prescription drugs, for example:

• If you spend $500 each year on prescription drugs, after you pay the $250 deductible, you would pay $62.50 (25%) for your prescription drugs while Medicare pays $187.50 (75%).
• If you spend $1000 annually on prescription drugs, after your $250 deductible, you would pay $187.50 (25%) while Medicare pays $562.50 (75%).
• If you spend more than $2000 each year on prescription drugs, you should consider enrolling in a prescription drug plan that covers more than the standard plan to avoid what is referred to as the “donut hole” or a limited period of time when you would being paying the full amount of prescription drug costs.

Important Note: If you use little or no prescription drugs, you may find that there is not much cost benefit for you to purchase the basic policy. However, if you do not purchase a policy by May 15, 2006, your cost will increase by 1% per month for each month that you did not own coverage. Therefore, even if you do not need the coverage now, it may be advisable to purchase a basic plan to secure the lower premium cost and avoid the higher rates in the future.

For additional help, call Medicare Oklahoma at (405)607-0058 or attend one of our free seminars.