Dealing With The New Medicare Prescription Plan

2006-02-11

It is no secret that you have probably been swamped with mail, TV ads, and still more mail about the Medicare prescription plan. It has become a little confusing for everyone. All of this confusion is being caused by the first comprehensive changes in the Medicare system in forty years. Some of the details will be nothing short of confusing but its not that bad.

The elderly that have most of their medical care covered by Medicare will benefit the most from the new plan. The out of pocket savings are said to be about 37% with the most benefit going to people that have catastrophic medical cost. Most of the elderly have not even thought about shopping around for health benefits for years will be confused and will have to pay close attention to the new rules.

Here are some of the ins and outs of the formally named Medicare Part D plan. The plan will offer drug coverage with stand alone prescription plans that are sold by private insurers. Medicare will govern all these plans. All these insurers will charge different premiums and cover certain drugs. It is said that each part of the united states will have about 11 to 23 providers or insurers and they will most likely offer more than one type of policy. Signing up before May 16, of 2006 will prevent you from being penalized.

Even though the government is picking up most of the tab, you will end up paying somewhere around $32 dollars a month for coverage. There will be cheaper plans around $20 dollars a month but the plan will be somewhat simpler in coverage than the more costly ones. Under the standard plan you will pay a $250 dollar deductible and be tossed around a wacky co-payment plan. You will pay 25% of the first $2,225 in bills and after that you will pay for the cost of drugs until you hit $3,600. After that your benefits will kick back in for the rest of the year. Medicare takes care of 95% of your bill for the rest of the year.

Low-income seniors will see the most out of the plan. A projected 83% drop in there cost is expected. Not having any coverage at an old age is the perfect time to sign up. You can never tell if you will be the one to get very sick in the next year or two. Most people say that the possibility of coming out ahead is pretty good by sighning up with the new plan. You should make sure that you have studied it and make sure it is right for you.

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