Money Matters

[Turner Publishing]

Practical Money Matters weekly column authored by Jason Alderman, a financial expert who directs Practical Money Skills for Life.

the right Medicare drug plan

By Jason Alderman

Prescription drug costs can take a double toll on retirees, who often
live on fixed incomes and are also likely to need more – and more
costly – medications as they get older. That's why the government
created Medicare Part D, a voluntary program that subsidizes
prescription drugs for Medicare recipients.

If you're eligible for Medicare, be aware that the six-week annual
Part D open enrollment period for 2010 takes place from November 15
through December 31, 2009. Except in a few circumstances, if you miss
that window you'll need to remain in your current plan until 2011.

Here are a few details on Medicare Part D:

Eligibility. If you're 65 or older or have certain qualifying
disabilities, you are eligible to participate in Medicare. (Go to
www.medicare.gov for eligibility information.) To sign up for Medicare
Part D you must also be enrolled in Part A (hospitalization), and/or
Part B (doctor visits and outpatient services). Under Part C, people
enroll in a private Medicare plan that usually provides limited
prescription drug coverage – be sure to check before joining Part D.

Signing up. Even if you think you don't currently need prescription
drug coverage, remember you may face a late penalty that grows monthly
if you don't sign up within your initial enrollment period –
typically the three months before and after the month you turn 65.

Alternate coverage. If you already have prescription drug coverage
through an employer or union plan and it is considered "creditable"
(equal or better coverage than Part D), you can stay in that plan
without incurring a late penalty for later joining Part D. Ask your
current provider if their plan is considered creditable; if so, weigh
its costs and features carefully before switching to Part D – it may be a better bargain.

Choosing a plan. Dozens of Part D plans exist with widely varying
costs, coverage and convenience. When comparing plans:

? First go to www.medicare.gov and click on "Prescription Drug Plan,"
where you'll find helpful information on how the plan works and
factors to consider when choosing a plan.
? Use the interactive Drug Plan Finder to compare features of plans
available in your area. (You can also do this by phone at
1-800-633-4227.)

? Each plan has a "formulary," which is a list of drugs covered at
varying copayment amounts. Formularies vary widely and can change
from year to year, so it's important to compare plans annually.
? Enter all your medications and dosages into the Finder for comparison.
You may not find a plan that covers all your medications, but aim for
one that at least covers the most expensive drugs. Also, note that
they may cover generic versions, when available.
? Make sure the plans include your preferred pharmacies.
? Once you've entered your information into the Drug Plan Finder, you
can compare plans side-by-side in terms of overall cost, deductible
and copayment amounts, user ratings, and other factors.

In addition to the Medicare site, another good resource is AARP
(www.aarp.org/medicare). Also, your doctor or pharmacist may be able
to help you choose the most cost-effective plan for your situation.
--------------------