| The lowdown on Medicare coverage |
|
|
It's important to call any plan before
joining to find out what your services will cost and
to make sure that a plan will meet your needs. Some
plans, for example, will let you use out-of-network
providers (sometimes for a higher cost). Also, be
sure to check in advance with your doctors or hospital
to determine if they accept the plan. To enroll
in a Medicare Advantage plan, you can complete a paper
application, call the plan provider by telephone or enroll
online. Be aware that there are limitations as to
when you can join, switch or drop a Medicare Advantage
plan.
Remember, when you join a Medicare Advantage
plan, you will have to provide your Medicare number
from your Medicare card and the date your Part A and
Part B coverage started. You will also generally still
pay the monthly Part B premium along with Medicare
Advantage plan's premium (if they charge one). That
includes coverage for Part A and Part B benefits,
prescription drug coverage (Part D, if offered) and
any other extra benefits.
Medicare Part D: prescription drug benefit
Medicare offers prescription drug coverage for everyone with Medicare under Part D. But to get Medicare drug coverage, you must take the initiative and join a Medicare drug plan.
Medicare drug plans are run by insurance
companies and other private companies approved by
Medicare. Each plan varies in cost and drugs covered.
Even if you don't take a lot of prescription drugs
now, you should still consider joining a Medicare
drug plan because, if you decide not to join such
a plan when you are first eligible, you will pay a
late-enrollment penalty if you choose to join later.
The penalty is 1 percent of the monthly premium for
each month you don't enroll and it's applied to all
future monthly premiums.
"Although there will be a number of
seniors out there who don't take any prescription
drugs right now and who'll view paying for prescription
drug insurance as kind of a waste, they also need
to think about the future," says Clark Howard, consumer
advice talk show host and author. "Consequently, you
are so much better off holding your nose and picking
a plan now rather than having to do so in the future
and also having to pay a penalty on top of your regular
premiums."
 |
| There are 2 ways to get Medicare prescription drug coverage: |
|
|
| 1. |
You can join a stand-alone Medicare Prescription
Drug plan. These plans, sometimes called
PDPs, add drug coverage to the original
Medicare plan, to some Medicare Private
Fee-for-Service plans, and to some Medicare
Cost Plans and Medicare Medical Savings
Account plans, or MSA plans. (The latter two plans
are part of the catch-all "other Medicare
plans" that are not Medicare Advantage plans.
Medicare Cost Plans, available only in certain
parts of the country, are a variation of
the original Medicare plan. An MSA plan
combines a high-deductible Medicare Advantage
plan and a bank account, much like the consumer-directed
health savings account plans that are available in the private
sector.) |
| 2. |
You can join a Medicare Advantage plan
(such as an HMO or PPO) or another Medicare
health plan that includes prescription drug
coverage. Through these you will get all
of your Medicare coverage (Part A and Part
B), including prescription drugs (Part D).
These plans are sometimes called "MA-PDs"
and you will usually pay a separate monthly
premium in addition to your Part B premium.
|
|
Every year from Nov. 15 to Dec.
31, you can switch to a different Medicare drug plan
if your plan coverage changes or your prescription
needs change. When you join or switch to a new Medicare
drug plan, your coverage will generally begin Jan.
1, of the following year.
Medigap policies
The original Medicare plan pays for many, but not
all, health care services and supplies. To help pay
your out-of-pocket costs, you might want to consider
getting a Medigap policy, also called Medicare supplement
insurance. Note: These plans can't be used to pay
your co-payments or deductibles for Medicare Advantage
plans.
|
