California Health Insurance News 
Articles / Medicare Part D Set To Roll Out
11/09/2005
Seniors can begin signing up for the new Medicare Prescription Drug Program
(Medicare Part D) on November 15, and with so many options available, some may need help in deciding what is best based on their needs. After May 15th premium rates will escalate, so this initial period is a window of opportunity for seniors.
Should seniors choose not to enroll in a Medicare prescription drug plan
(Plan D) now, and then change their minds later, they may be liable for the
late enrollment fee of about 1% per month, or 12% per year.
Here is one example of how this would work: Arthur is 65 years old and has
no prescription drug coverage. He doesn't join a Medicare prescription drug
plan before May 15th, 2006. He then decides to join a plan in 2009, waiting 2.5 years after the initial open enrollment period. Because of the late enrollment fee, his premiums will be about 31% higher (1% per month x 31 months.) than if he had joined in the open enrollment period. So every month for the rest of his life he will pay 31% higher than the average national cost of the part D plan. As long as he has a Part D Plan, he will have that penalty. If the national average of a Medicare Plan D costs $32, Arthur will pay almost $10 a month extra for the rest of his life.
"The key to the subject of Medicare Part D is to get as much information as possible from as many sources as possible as there are so many variations of policy from Company to Company and State to State" advises David Thau, CEO of Keep It Simple Insurance Inc. who specializes in helping seniors with health insurance issues. "Medicare Part D can be confusing and each plan in your state will have different prescription drug coverage, premiums and benefits. It's important that you begin the selection process carefully and logically. If you find the options confusing, reach out to someone who can
help find the best solution for your needs."
Here are a few tips:
* List all of the prescription medications you are taking and the retail cost of
each prescription.
* Obtain information on all plans available in your state, and make sure the
prescriptions you take are covered.
* Make sure you apply for Medicare Part D during your open enrollment period.
