What You Should Know about Medicare Prescription Drug Coverage

The 2008 open enrollment for Medicare Part D Prescription Drug Coverage is Nov. 15 - Dec. 31,

2007. Before selecting a prescription drug plan (PDP) or changing your coverage, the Nebraska

Department of Insurance suggests you get smart about your coverage options.

What are Medicare Prescription Drug Plans?

In 2003, the federal government enacted a Medicare prescription drug coverage benefit for

Medicare beneficiaries. Private insurance companies, whose plans have been approved by

Medicare, sell Medicare PDPs. Everyone with Medicare is eligible to enroll in a PDP,

regardless of income or assets.

What if I am already enrolled in a Medicare prescription drug plan?

Plans might change from year to year. Therefore, you should carefully examine all available

plans during each open enrollment season, as you may find that your current plan no longer

best meets your needs. Be sure to check the features of your plan, including the list of drugs

covered and the amount of premium you pay. If you are satisfied with your current plan, you

do not need to do anything to keep your plan. If you take no action, you will remain in your

current plan.

What if I am enrolled in a Medicare Advantage Plan with prescription drug coverage?

Medicare Advantage plans might also make changes to important features of your plan from

year to year, including the list of drugs covered, the premium you pay, cost-sharing

requirements and provider networks. Your plan options should be carefully reviewed during

each open enrollment season. If you take no action, you will remain in your current plan.

Do I need a Medicare prescription drug plan?

A Medicare prescription drug plan may provide more coverage than a Medicare supplement

insurance (Medigap) policy or employer-provided prescription drug coverage. If Medicare

considers your employer-provided drug coverage "credible" - meaning, coverage that is as

good as the Medicare prescription drug coverage benefit - you are permitted to keep your

current coverage without incurring future penalties. Check with your employer.

What about my drug coverage through my Medigap policy?

The benefit of a Medigap drug coverage plan is generally not as good as the new Medicare

prescription drug plan, so carefully review the benefits of your Medigap drug coverage. If you

are considering a change, you will need to make a decision during the enrollment period, or

you could be subject to late enrollment penalties if you decide to enroll in a PDP later.

Nebraska Department of Insurance

402-471-2201 ~ Toll-free Consumer Hotline 1-877-564-7323

www.doi.ne.gov

Enrollment Dates and Late Enrollment Penalties

Voluntary enrollment for Medicare prescription drug plans for 2008 began November 15 and

will end December 31, 2007. If you enroll by December 31, your new Medicare prescription

drug coverage will begin January 1, 2008.

If you are eligible, but wait to enroll after December 31, you may be subject to late

enrollment penalties. These penalties are generally 1% per month for every month you delay

enrollment. That means if you wait until March, you would pay a 3% late enrollment penalty.

There is no limit on the penalty, so the longer you wait to enroll, the higher the premium you

will pay.

What are my options if I want to enroll in a Medicare prescription drug plan?

You can enroll in a stand-alone prescription drug plan (Medicare Part D) or you can choose a

Medicare Advantage plan (Medicare Part C) that includes the new drug benefit.

You will want to compare plans and select the one that best meets your individual needs.

Here are a few things to check:

Medicare Fraud

Unfortunately, not everyone who contacts you about switching to a Medicare drug plan has

the best intentions. To protect yourself from a scam artistýs intent on taking advantage of

your situation, here are some tips to avoid becoming a victim:

appointment.

licensed agent by calling our toll-free consumer hotline at 1-877-564-7323.

numbers or credit card numbers to anyone you have not verified as a licensed agent. People

are not allowed to request such personal information in their marketing activities and cannot

ask for payment over the Internet. They must send you a bill. Once you decide to purchase a

plan and have verified that the agent is licensed, you may give the agent personal information

to assist in enrollment and billing.

Please call our office to see what Medicare Prescription RX Plan ( Part D) is best suited for your health needs.  402.312.7997