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Whether or not you should enroll in the new Medicare drug benefit depends on whether you have drug coverage now and the quality of your current benefits.

If you currently have drug coverage, you need to find out whether your current plan is “creditable” (as good as or better than Medicare’s drug benefit). If you have drug coverage that is as at least as good as Medicare’s drug benefit and you’re happy with it, you do not have to do anything.

You should get a notice from the sponsor of your drug plan telling you if your current plan is as good as Medicare’s drug benefit. The sponsor could be your insurance company, your current or former employer, your union, a state pharmaceutical assistance program or another group. If you don’t get a notice, call and ask for it.

If you have NO drug coverage, consider getting the Medicare drug benefit. Drug coverage can help reduce your costs if you take a lot of medications. If you do not have high drug costs now, decide whether you want to have a safety net in case you suddenly get sick and your drug costs increase dramatically. Keep in mind that Medicare drug plan premiums are expected to rise every year and that you may have other options for drug coverage in your area, like a state pharmaceutical assistance program. Call your State Health Insurance Assistance Program for more information.

You can enroll in the Medicare drug benefit during your Initial Enrollment Period (IEP). Your IEP depends on when you are eligible for Medicare:

·         If you currently have Medicare or will be eligible for Medicare in January 2006, your IEP will be between November 15, 2005 and May 15, 2006.

·         If you will become eligible for Medicare during February 2006, your IEP will be between November 15, 2005 and May 31, 2006.

·         If you will become eligible for Medicare during or after March 2006, your IEP for the Medicare drug benefit (Part D) will be the same as it is for Part B: a seven-month period that includes the three months before the month you become eligible, the month you are eligible and three months after the month you become eligible.

If you do not enroll during your initial enrollment period and you choose to enroll at a later date, you may have to pay a premium penalty.

However, if you already have prescription drug coverage at least as good as Medicare’s, you will not have to pay a premium penalty if you later enroll in the Medicare drug benefit. To avoid a premium penalty, you cannot have been without comparable drug coverage for more than 63 days.

Again, contact your insurer or your company’s human resources department to find out if your current drug coverage is comparable to Medicare’s.

The premium penalty will be at least 1 percent for every month you delay enrollment (1 percent of the average national premium). For example, if the average national premium in 2007 is $45 a month and you delayed enrollment for 15 months, and your plan’s premium is $40 a month, your monthly premium would be $46.75 (1% x 15 = 15% x $45 = $6.75 + $40 = $46.75).

If you have to pay the premium penalty, you will do so for as long as you are enrolled in the Medicare drug benefit.

If you are considering enrolling in the Medicare drug benefit, shop around and compare plans. Here are some questions to ask:

·         How much is the premium (the monthly amount I’ll pay for my plan)?

·         How much are the co-payments or co-insurance (the amount I’ll pay at the pharmacy)?

·         What is the deductible (the amount I’ll pay before my plan starts to cover anything)?

·         Does the plan cover all or most of the medicines I take?

·         Does the plan cover the most important medicines I take? (Discuss this with your doctor.)

·         Does the plan cover the pharmacies I use?

·         Will I have to pay the full cost of my prescriptions at any point after the deductible?

·         How will this plan work with my current coverage? (If you already have drug or health coverage.)

·         Could I risk losing my current coverage if I join this plan?

·         What is my plan’s network of coverage?

·         If I travel regularly, what kind of coverage will I have outside of my area?