Seniors Mull New Medicare Drug Plans

Seniors will have a new option for purchasing prescription drugs as part of Medicare Part D, the new plan that will go into effect on January 1, 2006.
Essentially, the new prescription drug plans will act as government-sponsored insurance policies (issued by commercial insurance companies), designed to help protect seniors against the ever-rising costs of prescription drugs.
However, not everyone is convinced that the plan will be effective.
Under the new guidelines, all seniors that are covered under Medicare Part A and/or Part B are eligible to enroll in a prescription drug plan.
Seniors can begin signing up for these plans starting November 15, and because of the significant number of plan options, early preparation is essential in determining what plan, if any, seniors should select.
“We are trying to educate people and let them know that this prescription drug plan is available,” said Lucy deHaan, Communications Manager for New York State’s American Association of Retired Persons (AARP) office.
Under the Medicare Part D plan, New York residents will have the option to enroll in one of 20 different prescription drug plans depending on which plan best suits their needs. Premiums, co-payments and other costs, as well as the number of drugs offered in each plan, will fluctuate depending on which plan they choose, with the average premium cost at $32 a month. However, some premiums will be less than $2, and others may cost more than $100.
In an average plan, a person who spends close to $2,000 per year on prescription drugs may save close to $1,000, but a person who spends only slightly more than $500 per year may end up paying more than 33 percent than they do now.
In some cases, retirees may be receiving better coverage from their former companies, but seniors should check with their employers or former employers before deciding whether or not to enroll in one of the new plans.
At Parker Jewish Institute For Health Care and Rehabilitation in New Hyde Park, the staff has already started initiatives to help its residents determine if they should enroll in a plan, and if so, which plan to choose.
Last weekend, it offered an information session that nearly 60 families attended, outlining the options that would be available.
Staff members and social workers will continue to meet with residents and their legal representatives including having larger information sessions at least once every two weeks starting in November to choose what plan will help meet their needs the best.
“In the end, we are going to have one-on-one meetings,” said Christopher Ferreri, Associate Vice President for Parker Jewish. “We want to help them make their selections prior to December 31.”
The enrollment deadline for the plan runs through May 15, 2006 — however, seniors can register after that date, but at a higher premium.
For more information, visit https://www.medicare.gov.