Medicare Part D and You

Since 12-17-05

From: Waspscpo@aol.com
Sent: Saturday, November 19, 2005 8:21 AM
To: undisclosed-recipients:
Subject: Medicare Part D and You

Shipmates, Veterans and Military Retirees:

By now, your mailbox is no doubt overflowing with offers to sign up for the new prescription drug benefit from Medicare that goes into effect on January 1, 2006. Also called Medicare Part D, Medicare prescription drug plans are being offered by many different private insurance companies that have a contract with the government. Each plan requires people who enroll in it to pay a premium every month that can range from less than $10 to nearly $100. Different plans cover different drugs. They also differ in the amount of out-of-pocket costs, suich as copays and deductibles that people will have to pay.

The big question you're probably asking yourself is: since I have prescription drug coverage with my current Tricare plan, do I need to buy a Medicare Part D plan, too?

IN ALMOST ALL CASES, THE ANSWER IS NO !!!

TFL provides a robust pharmacy benefit that covers most costs with only a low co-payment. If you join a Medicare Part D plan, you would have to pay out-of-pocket for the $250 deductible plus a monthly premium that averages $32 but could be as much as $100. And then there is the likelihood of a $1,350 coverage gap. This means that in most plans, Part D pays for the first $2,250 in prescription drug costs minus the $250 decuctible. After that, you would have to pay all costs until your total prescription drug costs reach $3,600 when Part D kicks in again.

But what if you don't get the Medicare Part D drug coverage plan now but later change your mind or find that your DEERS eligibility status has changed? Don't worry, you'll still be able to enroll during a Medicare Part D open-enrollment period, and there won't be any penalties involved if you sign up within 62 days of leaving your TFL health plan. If you wait longer, you'll have to pay the regular Part D monthly premium plus a 1 percent penalty for each month you didn't have your TFL coverage.
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Contributed, YNCS Don Harribine, USN(ret)