New
Medicare Prescription Drug Benefit
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Beginning on January 1, 2006,
Medicare beneficiaries can sign up for a drug plan or join a private
health plan (managed care/HMO plan) that offers drug coverage.
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The premium will be about $35 to $35 a month or less than $425 a
year, depending on where you live. People with low incomes will not
pay this cost.
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You pay the first $250 in drug costs each year, this is called the
deductible.
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At this point, coverage stops and you must pay
100% of covered drug costs – until you have paid for a total of $3,600 in drugs
yourself. This is called the out-of-pocket spending amount.
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If you spend more than $3,600 for your
medicines, the Medicare drug plan must then pay for 95% of the rest of your
covered drug costs for the year. You pay the rest – or a 5% co-payment
- $2
for every generic drug and $5 for every brand name drug. (Premiums do not count
toward the out-of-pocket costs.)
Important Points You Need
to Know:
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Medicare
prescription drug coverage helps you pay for the prescriptions you
need.
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Medicare
prescription drug coverage is available to all people with Medicare.
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There is additional help for those who need it most.
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Medicare prescription drug
coverage pays for brand name, as well as generic drugs.
Who is
Eligible to Participate Part D of Medicare?
For
more information, go to
“Introducing
New Medicare Drug Benefit”.
