What you need to do:
Decide between keeping your Medigap policy with drug coverage or joining a Medicare plan that offers prescription coverage. You have probably received information in the mail for plans in your area offering coverage. Compare your current coverage to the new Medicare coverage.
Unlike Medigap, most of the cost of Medicare drug coverage is paid by Medicare, and will never run out if you have unexpected drug costs. Also, if you do not join a Medicare Drug Plan or a Medicare Advantage Plan that offers prescription drug coverage by May 15, 2006, you will have to pay a late enrollment penalty to get drug coverage later. If you opt for Medicare prescription drug coverage, tell your insurer, and the drug portion of your Medigap policy will be removed.
What you need to do:
Your former employer or union probably mailed you a letter already. This information will explain how they will work with Medicare on prescription drug coverage and what decisions you will have to make. If you do not hear from them, visit their website or call your benefits administrator.
Medicare is working with Medicare Advantage and other Medicare Health Plans to help them provide even more coverage and/or lower costs. Your plan will let you know about the prescription drug options they will offer. You can also choose to switch to another Medicare Advantage Plan or Medicare Health Plan. Or you could choose the Original Medicare Plan and join a Medicare Prescription Drug Plan.What you need to do:
Read the information you got in the mail explaining any additional prescription drug coverage your plan will offer.
Starting January 1, 2006, you will get your prescription drug coverage from Medicare instead of Medicaid. The prescription drug coverage from Medicare has no premiums, no deductibles, and no gaps, and you will pay very little or nothing for almost all prescriptions.What you need to do:
Starting in the fall, you will need to decide which Medicare plan that offers prescription drug coverage you would like. If you do not sign up for a plan, Medicare will sign you up for one to make sure you do not miss a day of coverage. Medicare will send you a letter to let you know which plan you are in. You can switch to a different plan if you choose.
If your resources are less than $11,500 (single) or $23,000 (married), you may qualify for extra help paying for Medicare Prescription Drug Coverage. If you haven’t received an application or information about the extra help, and you think you may be eligible, you should apply. Remember, as Department of Health and Human Services Secretary Leavitt says, “If in doubt, fill it out!” You can apply Online by visiting the Help With Medicare Prescription Drug Plan Costs section on the Social Security Administration website.
Medicare: Common Situations was originally published on blackdoctor.org
