May 15th Medicare Prescription Drug Benefit Sign Up Deadline Approaching

May 15th Medicare Prescription Drug Benefit Sign Up Deadline Approaching

On May 15, 2006 an important deadline will occur. The final and most important phase of the Medicare Modernization Act, which I was excited to vote for in November 2003 is being phased-in through May 15, 2006. After May 15th most seniors won't be able to participate until next year and will pay a slight penalty.

The decision to participate in the Medicare Prescription Benefit is totally voluntary. Seniors who are happy with their current insurance coverage are under no obligation to participate in any Medicare prescription plan. However, AARP and the NAACP are advising their members to sign up for the new Medicare Prescription Drug Benefit.

For the first time since Medicare was established in 1965, every Medicare recipient is now eligible for a prescription drug benefit. Since seniors began signing up for the prescription benefit, last November, approximately 30 million people have taken advantage of their ability to receive affordable medications. The Center for Medicare and Medicaid Services (CMS) reports that over 400,000 seniors continue to sign up weekly.

Department of Health and Human Services Secretary Mike Leavitt has stated that the average savings for those participating in a Medicare Prescription Drug Plan is $1,100.

I've received letters from residents of Ohio's Third Congressional District with examples of savings locally. Mrs. Beverly Whatley writes: "I am very satisfied with my new (Medicare) Insurance Plan. For years…I paid almost $200 per month for supplemental insurance. It did not include prescriptions. (I) always paid for (my) own medications. Last year they added a $250 deductible. With my new plan I have no monthly premium…and no deductible either. My medications will cost $38, instead of $95, per month. I am very happy with my new Medicare program."

Seniors with the greatest need receive the most help. In 2006, single seniors with annual incomes below $14,700, and married couples living together with incomes less than $19,800, may qualify for some assistance. Seniors with even lower incomes may qualify for no deductible, no monthly premium and co-payments of just a few dollars. Seniors with slightly higher incomes may still receive some help and should contact the Social Security Administration regarding their specific circumstances.

When creating the new Medicare prescription drug plan, Congress established cost standards for seniors who choose to participate in the new Medicare prescription benefit. The maximum annual deductible was set at $250 and monthly premiums were estimated at around $35. However, now that various companies are competing in the marketplace, the actual average premium is closer to $25 and many programs are offering lower than originally estimated deductibles and co-pays.

In order to determine which plan is best for each individual's specific needs, they should have: a list of their medications, dosages, frequency, their preferred pharmacy and the current costs of their medications. Then compare plans either on-line or by calling CMS, OSHIP or the Social Security Administration.
CMS: Phone 1-800-MEDICARE Website: http://www.medicare.gov/pdphome.asp
OSHIP: Phone 1-800-686-1578 Website: http://www.ohioinsurance.gov/prescriptiondrugs/index.asp
SSA: Phone 1-800-772-1213 Website: http://www.ssa.gov/prescriptionhelp/

The most important thing to remember is that seniors must sign up for a plan by May 15th. Otherwise, in most cases, they will not be eligible until the next open enrollment period on November 15, 2006. Further, for those that don't sign up for a plan before the May 15th deadline, prescription drug coverage won't begin until January 1, 2007 and they'll pay a slight penalty.

Starting a new program that provides such wide-ranging choices and money-saving benefits on prescription drugs to over 40 million seniors takes time for both government agencies and people to adjust to. Now, with over 30 million seniors signed up for the new Medicare Prescription Drug Benefit, and many already saving considerable money, the new modernized Medicare will allow more seniors to afford their medications.

http://www.house.gov/miketurner/news/columns/4.21.06.shtml