New Medicare Part D

The new Medicare Part D Prescription Drug Plan begins on January 1, 2006.  The initial open enrollment will run from November 15, 2005 to May 15, 2006.  If you currently have drug coverage as a part of your Medicare Supplement plan, generally Plan H, Plan I, or Plan J, you may continue with that plan and not enroll in Medicare Part D.  Each Medicare Supplement Insurer will be required to provide an explanation of what options will be available for 2006.

A general overview of Medicare Part D:

1.       Monthly premium will be around $35

2.       $250 deductible

3.       You will pay $500 of the next $2000

4.       You will pay $2850 of the next $2850

5.       After you reach $5100 in total drug spending you will pay 5% or $2 & $5 co-pays.

Total Rx Costs	First $250	Next $2000	Next $2850	$+
Medicare Pays	0	$1500	0	95%
You Pay	$250	$500	$2850	5%

There will be additional help for seniors with low incomes and limited assets.  People on Medicare who fall below the income limit (which will be set in 2005) won't have to pay the premiums or the deductible for prescription drugs.

Plan D will help people with high drug costs and offer protection if drug costs rise.

Information for this article was obtained from the Medicare Website.  For more detailed information visit www.Medicare.gov.