Passing Up Prescription Coverage

When the government launched Medicare Part D this winter, the prescription assistance program for seniors was met with confusion, widespread glitches and bad press.

And as the enrollment deadline of May 15 looms nearer, an estimated 6 million eligible seniors haven’t signed up.

If you or a family member is eligible for Medicare, it’s time to sit down and figure out whether you can benefit from the prescription drug benefit. There’s a price for waiting: you’ll be charged a 1% late enrollment penalty for every month you put off signing up after this May.

Avoiding The Penalty

"Seniors should not be discouraged by what they have heard or read about, and still have sufficient time to enroll with far fewer problems than they might expect," says Thomas Young, M.D, Connextions Health.

A recent Connextions Health survey found many seniors are not aware of the 1% monthly premium penalty. According to Connextions, if you wait 8-1/2 years to sign up for Part D, your annual premium will be double what you would have paid by signing up May 15.

Only a handful of exceptions will be made to the late-enrollment penalty:

• If you currently have drug coverage equivalent to the Medicare Part D benefit
• If you become eligible for Medicaid for the first time
• If you get special approval from the Social Security Administration

Is Medicare Part D Right For You?

If you currently have prescription coverage through an employer or private health plan, you can sign up for Medicare Part D later without the penalty, and avoid paying for duplicate coverage now.

If you don’t take prescriptions, or don’t take very many, paying the extra premium might not seem like a smart investment. Visit  www.medicare.gov to estimate your costs and decide what makes sense for you. Remember: if you face an unexpected illness, your coverage will protect you against steep prescription expenses.

If you take several prescriptions, Medicare Part D could help you keep your costs down. By signing up now you can avoid the late-enrollment penalty.

"Signing up is as easy as three simple steps," says Mike Leavitt, secretary of the U.S. Department of Health and Human Services. "One: Get your prescriptions together. Two: Get your Medicare card. Three: Call 1-800-MEDICARE or go online at www.medicare.gov."