Senior Citizens Returning to School

The New Medicare Prescription Drug Coverage

Medicare will soon offer insurance coverage to help people pay for prescription drugs. The new program, known as Medicare Part D, will start January 1, 2006.

This new program for getting drug coverage is different from the way most people now get coverage for other health services under Medicare. Because it's new, it may seem strange at first. But this booklet will help you understand it and help you through the decisions you have to make.

These are some things you need to know right away:

• Everyone on Medicare can get drug coverage. No one can be denied for health reasons or level of income.
• The program is voluntary. You don't have to sign up. You may not need to if you already have good drug coverage from elsewhere.
• There is no single Medicare drug plan. To get coverage, you must enroll in one of the private drug plans Medicare has approved.
• If you have a limited income, Medicare will pay almost all your drug costs. (To learn more, see " Extra Help for People with Limited Incomes ,").
• If your drug costs are very high, A Medicare-approved plan will cover up to 95% of costs beyond a certain level in any one year.
• Plans will vary, including what drugs are covered and how much you will have to pay. So compare carefully.
• Medicare Part D drug coverage is not the same as the Medicare-approved drug discount cards available in 2004 through 2005. That temporary program offered only discounted prices. The new program is permanent and offers insurance protection for drug costs now and in the future.

Whatever your circumstances, it's worth checking out what Medicare drug coverage offers. In this booklet you will learn:

• how Medicare prescription drug coverage works.
• how to decide if you need it.
• how to find help picking a Medicare drug plan that meets your needs.
• how to sign up.
• where to go for help.

Extra Help

If your income is limited (less than $14,355 a year for a single person or $19,245 for a married couple living together in 2005) see " Extra Help for People with Limited Incomes ." This section describes Medicare's special program that gives full drug coverage with low co-payments and low or no deductible, and explains how to apply for it. This extra help can greatly reduce drug costs for people who qualify.