Medicare Part D
Medicare Part D - Medicare's new prescription drug coverage is available January 1, 2006 for people eligible for Medicare and who are enrolled in Part A and Part B. Before one decides whether to enroll and when to enroll, they should determine if any Rx benefit currently available is considered to be credible coverage. Credible coverage determines if you can enroll at a later date without penalty.
Any Rx benefits that meet the following may not be creditable coverage for Medicare purposes:
--any product with a benefit period maximum of $5,000 or less
--any product with 50% coinsurance rather than tiered copays
If a Medicare eligible employee has either of the above prescription benefits, they should consider enrolling in Medicare Part D. They have until May 15, 2006 to do so without penalties such as paying a higher premium if they join the Part D plan at a later date.
If a Medicare eligible employee has an Rx benefit that is creditable coverage, they can enroll in Medicare Part D at a later date without penalties. This later date is November 15 through December 31 each year.
Here is a "snapshot" of the Part D benefits:
--$250 yearly deductible.
--Medicare pays 75% up to $2,250 annually.
--Participants pay 100% of drug costs between $2,250 and $3,600.
--Medicare pays 95% for drugs over $3,600.
Different insurance carriers offer different copays and coverages. For further info visit www.Medicare.gov
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