Q: My husband and I already have good prescription drug insurance through his former employer. From what we have read we believe that what we have now is a better deal than one of the new Medicare drug plans. What do you recommend?

A: Seniors who have prescription drug insurance through an employer or union, either as an active worker, retiree, or dependent, should receive notices in the mail this fall about the new Medicare prescription drug benefit. Employers and unions are required under the new Medicare drug law to explain whether the health and prescription drug insurance they provide to you meets Medicare's definition of "credible coverage," or "actuarially equivalent" to the new Medicare Part D drug benefit. In theory, this means these benefits should be at least equal in value to the new Medicare drug benefit. According to Medicare officials and specialists in employee benefits, this may not always be the case, however.

We highly recommend that you carefully review the coverage and your estimated out-of-pocket costs in the health plan and prescription drug insurance that you expect to receive in 2006 before making any decisions. It may differ from what you receive now. In recent years employers have been shifting an increasing portion of costs (such as higher co-payments) to employees. According to some health policy analysts, the Medicare rules may allow employers to provide a benefit that is less generous than what you would receive if you signed up for the Medicare drug benefit.

Once you have an idea of whether your current coverage will differ, or how much your estimated out-of-pocket costs may increase, then we suggest that you compare it with the new health plans and prescription drug coverage that would be available in your area under Medicare Part D. Plans may have different premiums, co-payments, and may cover different medicines. We expect it will be a confusing task.

If you receive notice that your employer's drug benefit meets the definition of "creditable coverage," and you are satisfied that it's at least equivalent or better than Medicare Part D, there are special rules that allow you to delay enrollment in Medicare Part D and not be charged a penalty for delayed enrollment should you later change your mind. The rules are complicated, and we strongly recommend that you take nothing for granted and confirm this with Medicare or your employer.

If you receive a notice that the coverage you have now is NOT "credible coverage," however, then you would be penalized for delaying enrollment in Medicare Part D. The Part D premium would be increased by 1% per month for every month you delayed enrollment, an increase that you would pay for the rest of your life.

For more information call Medicare at 1-800-633-4227 or check online at www.medicare.gov.