From Advisor editor, Mary Johnson
The Initial Enrollment Period for new Medicare drug plans begins November 15th. Chances are your mailbox is crammed with information from insurers and your telephone is ringing off the hook. Some of the new drug plans, however, could be inappropriate for your needs, leaving you at risk for high out-of-pocket costs. Prices and coverage will vary, and a better deal could be around the corner. You have six months — until May 15, 2006, to make an informed decision without incurring a late enrollment penalty. Taking time to get familiar with your new choices will be time very well spent.

For seniors with low incomes, or the highest drug costs, the new Medicare drug program might be a good deal because the government provides extra financial assistance and catastrophic coverage.  But you still need to shop for a drug plan and enroll to receive the benefit. Cautious, careful comparisons are in order.

Here's how to get started:

• Review your current coverage (including any Medigap or supplemental insurance you already have) and understand how it works. Find out what changes are planned for your current coverage in 2006, and what you are likely to spend. Some of the new drug plans will offer more comprehensive supplemental benefits, including doctors' and outpatient services, in addition to drug coverage. You might be able to find a plan that offers better coverage at a better price than you now have.
• Make a list of all the prescription drugs you currently take and what they cost. Review the entire list of prescriptions with your doctor to confirm that you really need to take all those drugs in the first place. Find out if there's a less costly generic or older drug that will treat your condition just as effectively. If your doctor warns you not to make substitutions for your current medications, find out why. Some drug plans may not cover all the drugs you take and will want you to make substitutions. If your doctor says no, it's important to know this ahead of time.
• Shop around. Review material you receive in the mail, attend informational meetings, and use the Internet. It's worth a trip to your local library, if you have no computer of your own. The Medicare website has a tool to help you compare drug plans at www.medicare.gov or call Medicare 1-800-633-4227. Most importantly, if you are still confused and need help, call your Area Agency on Aging (check your local phone book) and ask for one-on-one counseling.
• Protect yourself from marketing abuse and scams. Although government rules permit telemarketing calls, TSCL recommends that you DO NOT accept telemarketing calls. The new drug program is simply too complicated to make an informed decision over the phone and there is no way to safely verify that the person calling is really who they say they are. Drug plan scam is very widespread. DO NOT give out Social Security, bank account, or credit card numbers. Medicare rules forbid drug plans from asking for these. If you are getting calls, firmly say "Do Not Call" and hang up. Don't worry about being polite, worry about staying safe.

November 2005