The new Medicare Part D Drug Plan is now available to the following people:

• Anyone currently on Medicare

• Anyone currently on Medicare and Medicaid

How the plan works:

1. Private companies are selling the insurance.

2. The amount of the premium will be determined by:

   1. Where you live

   2. What types of drugs you are currently taking

   3. The company that you purchase the insurance from

   4. The average premium will be about $30/month.

3. If you are currently on Medicare and/or Medicaid you will be covered on January 1, 2006, if you buy a policy before December 31, 2005.

4. If you are currently on Medicare and sign up after December 31, 2005 and before May 15, 2006, your coverage will start on the first day of the next month. Example: You sign up on February 4, 2006, coverage starts on March 1, 2006.

5. If you do not sign up by May 15, 2006 and are currently on Medicare, you may sign up only during enrollment periods (twice per year) and your premium will be 1% higher for each month after May 15^th that you signed up. THIS PENALTY IS ADDED TO YOUR PREMIUM FOR AS LONG AS YOU BUY MEDICARE D INSURANCE.

   Important - Please Note

   There is an exception: If your current drug plan is better than Medicare D, you do not have to sign up for Medicare D. If in the future, your plan is dropped or cancelled by the insurance company, you may sign up for Medicare D with no penalty. KEEP THE LETTER FROM YOUR INSURANCE COMPANY THAT SAYS YOUR CURRENT COVERAGE IS BETTER THAN MEDICARE PART D. THIS LETTER WILL ALLOW YOU TO BUY MEDICARE PART D IN THE FUTURE WITHOUT A PENALTY IF THE INSURANCE COMPANY STOPS OFFERING YOUR CURRENT PLAN.

    

6. Individuals that go on Medicare in the future will be able to purchase Medicare Part D at the time they are accepted for Medicare. For most individuals that will be when they become 65 years old.

7. Most plans will have a deductible, but some plans will not. The deductible must equal to or be better than the following:

   1. $250 per year plus

   2. 25% of the next $2,000 (total deductible is $750 for the first $2,250 of drugs) plus

   3. 100% of the next $2,850 plus

   4. 5% of the amount over $5,100/year.

8. Some low-income individuals and anyone on Medicare and Medicaid will have their entire Part D premium paid by Medicare.

In order to make an intelligent decision you will be required to shop for your Medicare D coverage. Below are some of the important questions to ask the insurance company:

• What are your deductibles?

• What drugs do you pay for?

• What conditions does your policy have? (Must buy by mail or will not pay full cost charged by the pharmacy, etc.)

• What is your premium?

Since private companies are selling this insurance, there will be differences in the cost and benefits offered by each company. In some cases those differences may be very great. You must shop very carefully for your policy. Also, if your present policy is better than the minimum required by the Medicare D law, then do not buy a Medicare Part D policy and save the letter from your insurance company that says your present coverage is better.

Be on the lookout. Insurance companies are mailing flyers to Medicare participants advertising their plans. Some companies are also calling Medicare participants on the phone. Be sure to read everything carefully and ask any caller all of your questions.

For more information go to www.medicare.gov