Winter 2006
Wellbeing Home

Simplifying Medicare’s New Drug
Plan…So You Can Start Saving

You’ve probably heard that Medicare’s new Prescription Drug Coverage might save you money on medicine. This new drug plan is available to anyone who has Medicare. But how does it work exactly?

Below you’ll find answers to some commonly asked questions.

How Much Will i save?

If you don’t have any drug coverage at all, then Medicare’s new prescription coverage promises to cover at least half of your drug costs.

What if you already have drug coverage through a MediGap policy, an employer, or a union? You can sign up for Medicare, too, if you think it will save you money. Your drug coverage provider can help you figure out the math.

The exact amount you need to pay for Medicare drug coverage will vary. But the following estimate gives you a rough idea:

• You must pay a monthly premium of about $37.
• You must pay the first $250 you spend on prescriptions each year. This is your deductible.
• Once your deductible is reached, you pay 25% of the cost of any drug you need each year up to $2,250. Your Medicare drug plan would pay the rest.

If your total annual drug costs exceed $2,250, then you will need to pay 100% for any additional drugs you need that year up to $3,600. After you spend $3,600, you only pay 5% for any other drugs you need.

People with limited income may be able to get help paying for Medicare drug plan costs.

How Can i get Medicare
Prescription Drug Coverage?

It depends on your current Medicare coverage:

• Are you a member of a Medicare Advantage Plan or other Medicare Health Plans? If so, then your plan may automatically enroll you in a Medicare Prescription Drug Plan. Check with your plan to see.
• Do you have Original Medicare? If so, then you will need to pick a Medicare Prescription Drug Plan to join. Medicare has approved various plans throughout the United States. You can compare the plans available in your state at www.medicare.gov. A customer service representative at 1-800-MEDICARE can also help you.

How Can i Enroll in a
Medicare Prescription Drug Plan?

You can enroll in three ways:

• Enroll online at www.medicare.gov.
• Call the plan directly.
• Call 1-800-MEDICARE.