Reasons to enroll in the drug plan

KNIGHT RIDDER NEWSPAPERS
Q. I signed up for a Medicare-approved discount card earlier this year. Can I still use it in 2006 or do I need to sign up for something else? -- Joyce
A. You can continue to use your Medicare-approved drug discount card, but only until May 15, 2006. Even before then, you may want to consider switching to a Medicare prescription drug plan. Beginning in January, Medicare will help pay for medications through prescription drug plans, and there are good reasons to consider signing up.
First, Medicare drug plans are expected to do a better job than discount cards in cutting drug costs for enrollees. Medicare drug plans will offer insurance coverage and protection from catastrophic expenses, unlike discount cards, which simply provide discounts off retail prices. But you should know that once you sign up for a Medicare prescription drug plan, you can no longer use your Medicare-approved discount drug card -- even to help pay for prescriptions that may not be covered by your new plan.
Second, Medicare will provide significant financial help to people enrolled in Medicare drug plans with modest incomes and assets -- less than about $14,400 (or $19,250 per couple) and less than $11,500 in assets ($23,000 per couple), not including your home or car. During 2004 and 2005, some people with modest incomes received up to a $600 credit to help pay for their prescriptions. If you received the credit but have not spent it, you can use the amount that is leftover before May 15, 2006. However, if you enroll in a Medicare drug benefit plan, the credit will not be available to you once your coverage begins.
A third and not insignificant reason to consider signing up for a Medicare prescription drug plan is to avoid financial penalties for delayed enrollment. Under the law, people on Medicare who delay signing up may pay a penalty that is added to their monthly premium as long as they have Medicare drug coverage.
You will have between Nov. 15, 2005, and May 15, 2006, to enroll in a Medicare prescription drug plan. It is important to begin to think about your options sooner rather than later. Medicare will provide information about the new prescription drug plans beginning later this month.
XThis column was prepared by the Kaiser Family Foundation, an independent, nonprofit private foundation based in Menlo Park, Calif., not affiliated with the Kaiser Permanente health plan. Send questions about the new Medicare drug benefit to Medicare Q & amp;A, The Kaiser Family Foundation, 1330 G St., NW, Washington, DC 20005 or MedicareQkff.org.