Medicare Part D - Drug Coverage

Medicare Part D - Drug coverage is coming shortly. We will be able to help you sign up after November 15th. Here are the basics

1. In 2006, the beneficiary pays $35 per month premium ($420 per year) if they want this coverage. Beneficiaries are not required to enroll in Part D, but if they enroll later they will pay a higher monthly premium than normal.
2. Beneficiary pays $250 annual deductible before Medicare pays anything.
3. Beneficiary pays 25% of the costs of the next $2,000 of drug expenses (beneficiary pays $500 of next $2,000 of drugs costs plus all of the first $250 of drug costs for a total of up to $750).
4. After $2,250 of drug costs, there is no coverage until the beneficiary has paid another $2,850 worth of drug expenses (beneficiary pays up to $3,600 for up to $5,100 in drug costs).
5. Catastrophic coverage begins after beneficiary has paid $3,600 of out-of-pocket expenses ($5,100 total drug costs). The beneficiary pays the greater of $2 for generic, $5 for brand name drugs, or 5 percent of the costs, whichever is greater.
6. Low-income individuals (depending on their income) pay a much smaller amount of their drug costs.