NEW Medicare Part D Information

PLEASE NOTE: This page is meant to summarize the key points of the new Medicare Part D Prescription Plan. It does NOT contain all of the details of Part D- PLEASE consult www.medicare.gov for complete details

What is Part D? It is a "stand-alone" Medicare Prescription Plan that is administered by authorized insurance companies.

Who is eligible? Anyone with Medicare Part A or Part B coverage. You cannot be turned down because of health or income reasons.

When is the enrollment period? Open enrollment takes place November 15th, 2005 thru May 15th, 2006.

When does it become effective? If you enroll before December 31st, 2005, it will become effective January 1st 2006. If you enroll after January 1st, your coverage will become effective the first day of the following month

Is there a premium? Yes. The average national premium is forecasted to be about $32 per month. You will be able to choose a plan that will cover your $250 deductible and other benefits for a higher premium.

Is Part D voluntary? Yes. However, if you decide to not enroll during the Open Enrollment period, you will be penalized 1% of the premium for each month that you wait. Example: Let's say you decide to wait 24 months before taking Part D. Let's also say that the 'national average premium' has risen to $45 per month. The penalty (24 x 1% x $45) would be an additional $10.80 that you would have to pay every month thereafter!

If my current Medicare Supplement (also called 'Medigap) does NOT have Rx benefits, do I have to switch to another Medicare Supplement to get Medicare Part D? No, you can keep your existing Medicare Supplement coverage just as it is and add Part D as a 'stand-alone' plan.

If my current Medicare Supplement DOES have Rx benefits, do I have to switch to another one to get Medicare Part D? You can choose to keep your existing Medicare Supplement Plan (H, I, J) or you can choose to switch to a Medicare Supplement without a prescription benefit AND choose Medicare Part D. In most cases, you will gain greater benefits by the latter. Consult your insurance professional, someone versed in Medicare advocacy, or a Medicare representative before making your decision.

What if I have better Rx coverage now from my job? You should be getting a letter from your employer stating whether or not you have 'Creditable Coverage' from your workplace. Creditable Coverage means that your Rx benefits at work are at least as good as Part D's. You can choose to keep your employer's coverage or switch to Part D. However, the key here is that if your employer offers 'Creditable Coverage' and should you remain on that plan, you would not have to incur a penalty for waiting in the future should you choose to switch to Part D. Again, please consult your insurance professional, workplace benefits administrator, someone versed in Medicare advocacy, or a Medicare representative before making your decision

Can I ever change plans? Yes. Each year you will have have an opportunity to select a new plan from November 15th thru December 31st for the following year.

How do I enroll?

1. You can enroll online (Medicare.gov)
2. You can call the Plan directly
3. You can call Medicare (1-800-MEDICARE)

In General, How Does Part D Work?