The Medicare Prescription Drug Plan Explained
The Medicare Prescription Drug Act of 2003 added much-needed
prescription drug benefits to the program. Of course, as
with everything Medicare related, the new plan is complicated,
and you will need a few important facts to make the best
possible decisions regarding your coverage options.
The Medicare Prescription Basics You Need to Know
Everyone currently enrolled in Medicare will be eligible
and if you’re happy with your current Medicare coverage,
you’ll be free to keep it. Medicare’s selection
of approved Discount Drug Cards won’t be available
until the new plan takes effect in 2006. You’ll be
able to select a plan variant and enroll in Medicare Part
D as early as May 2004.
How Will the Plan Work for Me?
The specifics of each plan variant will vary from state
to state, but this is how they’ll work in general:
- You’ll have to select your particular prescription
drug plan from the plan’s options.
- You’ll be
responsible for a monthly premium of around $37.00.
- Your
plan will have a deductible of around $250.00.
- Your plan
will cover 75% of your prescription drug costs between
$250.00 and $2,250.00.
- You’ll have will pay 100% of
your prescription drug costs between $2,250.00 and $3,600.00
after which, Medicare
will cover around 95% of your costs above $3,600.00.
- Individual
variants of Medicare Part D’s plans may
offer additional options.
- The plan may be able to save
you from 15 to 25% per prescription.
- If you need extra
help, in the form of lower co-payments and premiums, you
will be able to get it.
- You can choose to remain on traditional
Medicare, and all of the options above are voluntary.
The One Thing to Keep in Mind
Probably the most important thing to remember about Medicare’s
Prescription Drug Program, is that Part D is still very much
in the making. No one has all of the answers about how it’s
going to work yet. If you’re a current Medicare participant,
you will be receiving a packet containing the 2006 Medicare
and You Handbook along with detailed information on the new
plans and how to enroll in the one that best suits you.
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