Puzzling over the new Medicare Prescription Drug Plan? Here are sources of information.

Remar Sutton, DCU StreetWise Spokesperson

Medicare legislation, passed by Congress in December 2003, provided for optional prescription drug coverage to begin in 2006. The optional insurance coverage is called Medicare Plan D. The initial enrollment period for benefits to begin January 1, 2006, is between November 15, 2005 and December 31, 2005. You can also sign up between January 1, 2006 and May 15, 2006, but you may pay a penalty.

Everyone who receives Medicare is eligible for Plan D. The coverage is an insurance plan for which you pay a premium (deducted from your Social Security Check); there is also an annual deductible and co-payments for individual prescriptions. Because the prescription drug plans are provided by a number of different private insurance companies, operating under Medicare guidelines, choosing the plan that is right for you (or your parents) can be difficult. Different providers also cover different lists of drugs. A list of the drugs covered is called a formulary. So you must review plans to see which covers your prescription medications and at what price.

Many Medicare recipients may already have health care coverage that provides prescription drug coverage that may be as good or better than that available through the Medicare Plans—again you need to compare to determine which is best. (Your current health care plan, if you have one, should have sent you information comparing their coverage to potential Medicare plans.) If your income and assets are very limited, you may also qualify for assistance with the cost of the prescription drug plan.

For more in-depth information to help you compare your options, we recommend the following Websites. Also check for resources on your state insurance department's website.

www.medicare.gov When in doubt, go straight to the source. The Medicare Website provides basic information, raises points to consider, provides a “landscape of local plans” that enables you to compare plans in your state, and offers a Drug List (formulary) for each plan so that you can see which plans offer the drugs you need. If you choose, you may also enroll online.

Important tip: Message board users trying to figure out their plan are reporting that the prices given on the Medicare site for individual drugs are not necessarily those on the specific plan's company website. So, before you enroll, always double check the plan, coverage and pricing on the company's website, not just Medicare's.

www.medicarerights.org The nonprofit Medicare Rights Center provides some helpful resources to help you ask the right questions for your needs and to compare plans.

AARP provides latest news breaks and a variety of helpful resources to help you sort through your choices.

Breaking news analysis prepared for DCU by Remar Sutton & Associates, December 2005.

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