What is the Medicare Prescription Drug Plan?

The Medicare drug benefit is called Medicare Part D. Medicare Part D covers prescription medicines. This means that people who have Medicare Part A (hospital insurance) or Medicare Part B (medical insurance) are able to get insurance to pay for part of their prescription drugs. Medicare works with insurance companies to offer this benefit. It is available no matter what your income, illnesses, or drug costs.

You can sign up or change your plan between November 15 and December 31 each year. Your coverage will begin on January 1 of the new year.

How will the new health care law affect Medicare Part D?

The new law will benefit Medicare patients who will hit the coverage gap (“donut hole”) under the prescription drug benefit. The coverage gap is a period of time in which you have to pay for all your prescription drug costs yourself. In 2010, the new law establishes that patients who have Medicare Part D will receive a $250 rebate from Medicare in 2010. These checks will begin mailing in June and will continue to be mailed throughout the year as Medicare patients enter the coverage gap.

In 2011, if you are a Medicare patient, you will receive a 50% discount when you buy brand-name prescription drugs covered by Medicare Part D. You will receive additional savings over the next 10 years. The coverage gap will be eliminated by 2020.

What can I do to get ready for Medicare Part D?

1. Write down the names and dosages of all prescription drugs that you are taking. This information will be important to decide on the right plan for you.
2. Do you have drug coverage through a former employer; union; or Medigap? If so, you should have gotten a letter explaining the drug coverage. Make sure you keep the letter so that you can compare the current coverage to the new plans.
3. List the cost and what you currently pay for drugs (if you have drug coverage through the above organizations).
4. List the name, address and phone number for pharmacies you like to use.
5. If you have a limited income or modest means, you can call the Social Security Administration (SSA) at 1-800-772-1213 to apply for extra help. You may also have gotten a letter from the SSA asking you to apply.

Where can I get more information?

If you're looking for more information about Medicare Part D, familydoctor.org has compiled a list of additional resources that may be helpful.