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The Kaiser Family Foundation: Medicare Q&A Weekly Column
The Kaiser Family Foundation
September 15, 2005
Q: I hear that Medicare will begin to pay for prescription drugs next year, and that I will have to pay a monthly premium to get this coverage. I am healthy and take only one prescription. Do I have to sign up for a Medicare drug plan? -Martha
A: Dear Martha,
It is smart to think about enrolling in a Medicare prescription drug plan before the new drug benefit goes into effect. Medicare does not pay for prescription drugs now, but starting in January, Medicare will help cover medication costs for people who enroll in one of the new prescription drug plans.
Between Nov. 15 and May 15, you and others on Medicare will have the option of enrolling in a Medicare plan that will help pay for prescriptions in 2006.
The first question to consider is whether to sign up for a Medicare prescription drug plan. While it may be tempting to wait a year or two before signing up, there are good reasons to enroll in a Medicare drug plan for 2006 - even if you are in good health. The Medicare drug benefit is expected to reduce drug costs for most enrollees and protect against catastrophic drug expenses. To get this coverage, you will have to pay a monthly premium. Premiums are expected to be about $32 a month, but you may pay more or less depending upon which plan you choose. For many people, the coverage could be a good deal, since Medicare is subsidizing the cost. There is additional financial help for Medicare beneficiaries with low incomes.
Another reason to consider enrolling for 2006 is to avoid a financial penalty for late enrollment. Unless you have drug coverage that is at least as good as what will be offered by Medicare drug plans, such as retiree health benefits from an employer, you could be required to pay a premium penalty if you change your mind and sign up for a Medicare drug plan in a future year. The premium penalty would increase the cost of your Medicare drug coverage permanently.
If you sign up, there will be other decisions coming your way, not the least of which is choosing the Medicare drug plan that's best for you. Tips for choosing a plan will be the topic of future columns.
This column was prepared by the Kaiser Family Foundation, an independent, non-profit private foundation based in Menlo Park, Calif., that is not affiliated with the Kaiser Permanente health plan.
Readers are encouraged to send in questions to the Foundation, which will respond to some of them in future columns. Send your questions to Medicare Q and A. The Kaiser Family Foundation. 1330 G St., NW. Washington, DC 20005 or
MedicareQ@kff.org.
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