Now Is The Time To Review Your Part D Options
You have until December 31 to make changes to your Medicare health or drug coverage

From November 15 through December 31, during the Annual Coordinated Election Period, all people with Medicare can make any change to their health or drug coverage. During this time you can change to another Medicare private health plan or to Original Medicare, and add, drop or change Medicare drug coverage (Part D). Your new coverage starts January 1.

 Medicare’s drug benefit (Part D) is outpatient prescription drug coverage for anyone with Medicare. Enrollment is optional; whether you should take Part D depends on your current coverage and costs. You are generally limited in when you can change your coverage (this is known as lock-in). The ACEP is the time of year when everyone with Medicare can make any change they like.

 Part D coverage is available only through private companies. If you want this coverage, you have to choose and enroll in a private prescription drug plan. You must pick a plan that works with your Medicare health coverage. People who have Original Medicare can enroll in a “stand-alone” plan, which offers only drug coverage. Most people who get their Medicare benefits through a Medicare private health plan—such as an HMO or PPO—must get their drug coverage as part of the health plan’s benefit package (there are a few exceptions).

Premiums, annual deductibles, co-payments, covered drugs (formulary) and participating pharmacies vary from plan to plan. And most plans change their costs and benefits every year, so even if you are happy with the plan you had this year, it is important to review your options to make sure you will be in a plan that best meets your needs in 2009.

You can compare stand-alone prescription drug plans by going to the Medicare web site, www.medicare.gov, and clicking on “Medicare Prescription Drug Plans—2009 Plan Data.” You can enter the medicines you take and pharmacies you use, and this plan finder tool will estimate your monthly out-of-pocket costs in different plans. You can also call 800-MEDICARE to get information about the plans that are offered in your area. Always call the plan to verify information before you enroll. The plan finder and 800-MEDICARE can only give you an estimate. You will want to verify coverage, costs and restrictions. Also, keep in mind, that if your drug needs change throughout they year, your costs will also change.

Another source of help is your State Health Insurance Assistance Program (SHIP) office. SHIP counselors can work with you to select the plan that works best for your particular needs. To find the number for your SHIP, call 800-MEDICARE.

If you are considering changing your health coverage as well as your drug coverage, make sure to look at all the costs, not just the premium. Make sure the health coverage you choose will cover the doctors, hospitals and pharmacies you prefer to use at a cost you can afford.

If you decide to switch plans, you should enroll in your new plan before you discontinue your old plan. You can change plans as many times as you need during the ACEP, and your last choice will take effect January 1. However, to avoid enrollment problems, it is best to make as few changes as possible. It is best to enroll in your new plan by calling 800-MEDICARE, rather than through the plan itself. You will be automatically removed from your old plan when your new coverage starts.

 As mentioned above, enrollment in a Part D plan is optional, but if you do not enroll in Part D when you first become eligible and you choose to enroll at a later date, you may have to pay a premium penalty. (The premium penalty will be 1 percent of the average national premium for every month you delay enrollment.) You will not have to pay a penalty if you have had “creditable coverage”—coverage considered as least as good as the Medicare drug benefit—and were not without that coverage for more than 63 days when you enroll in Part D. You can also avoid the penalty if you qualify for Extra Help, a federal program that helps pay for most of the costs of prescription drug coverage. You can apply for Extra Help through Social Security.
 
To read more about how to choose a Part D plan that best suits your needs, log on to Medicare Interactive at www.medicareinteractive.org. Medicare Interactive is a resource provided by the Medicare Rights Center, the largest independent source of health care information and assistance in the United States for people with Medicare.