Medicare and Prescription Drug Coverage

Medicare prescription drug coverage is insurance for senior citizens. It covers brand-name and generic prescription medications at participating pharmacies. This coverage offers protection for people whose medication costs are very high, and it protects people from unexpected future prescription medication costs.

Eligibility

All senior citizens with Medicare can receive this coverage. There are no restrictions based on income, resources, health status, or current prescription expenses.

When you first become eligible for Medicare (three months before the month in which you turn 65 until three months after you turn 65), you can sign up for prescription drug coverage. If a disability has allowed you to get Medicare, you may sign up from three months before to three months after your 25th month of your cash disability payments. You may pay a penalty if you do not sign up when you first become eligible. If you failed to sign up when you were first eligible, your next opportunity to join will be from November 15, 2009 to December 31, 2009.

How it works

The coverage you have now should be a factor in making your decision as to whether you would like to get Medicare prescription drug coverage. To sign up for prescription drug coverage, you can join either a Medicare prescription drug plan or a Medicare Advantage Plan or other Medicare Health Plan that covers drug costs. If you join such a plan, Medicare will cover brand-name and generic drugs.

If you choose to get Medicare, you will generally pay a monthly premium and a yearly deductible, which vary by plan. Additional costs include partial costs of your prescriptions, including a copayment or coinsurance; your costs will differ based on the drug plan you choose. Some plans give you more cover and additional drugs for a monthly premium that is a bit higher. If your income and resources are limited and you qualify for extra help, you may not have to pay a premium or deductible.

Advantages

Medicare prescription drug coverage can protect you from unexpected expenses from prescription medications, offering greater peace of mind. If you do not use many prescription drugs at this point, you should still consider joining to prepare for the future. Most senior citizens require the use of more prescription medications as they age, which means that joining now will protect you from unexpected (and potentially very large) prescription drug bills in the years to come.

Extra help is available for people with limited income and resources. If you qualify for this help, Medicare will pay for nearly all of the costs of your prescription drugs.