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Prescription Drug Plans

Medicare prescription drug coverage is a form of insurance that covers certain prescription drugs. Coverage extends to both name-brand and generic drugs, provided that the consumer gets the prescription filled at a participating pharmacy. The coverage is intended to offer some protection for people who have extremely high prescription drug expenses.

Everyone who receives Medicare is eligible for prescription drug coverage. There is no qualification process with regard to income/assets, health status, or current prescription expenses. You may sign up for the coverage when you first become eligible for Medicare, also known as the "Initial Open Enrollment" period. For more information about Initial Open Enrollment, click here. Failing to sign up during this initial period may cause you to pay a penalty, and will cause you to wait. The next opportunity to join runs from November 15, 2009 to December 31, 2009.

There are two ways to get Medicare prescription drug coverage:

  1. Join a Medicare prescription drug plan.
  2. Join a Medicare Advantage plan or other Medicare health plan offering drug coverage.

Similar to most other insurance policies, joining will generally mean paying a monthly premium and a yearly deductible. The premium varies by plan. You will also pay a portion of the cost of your prescriptions. This cost to you includes a copayment or coinsurance. These expenses vary by drug plan. Like most other insurance, the plans that offer more coverage and additional drugs typically require a higher monthly premium. However, some consumers with limited income and assets may qualify for Medicare to pay for almost all of their prescription drug costs. To apply or get additional information and assistance, contact Social Security at 1-800-772-1213 or www.socialsecurity.gov.

One of the clear advantages of a prescription drug plan is the comfort that comes with being protected from unexpected drug expenses. As Medicare explains on its Web site, "Even if you don't use a lot of prescription drugs now, you should still consider joining. As we age, most people need prescription drugs to stay healthy. For most people, joining now means protection from unexpected prescription drug bills in the future."


This Web site is intended for general information purposes only. It does not nor is it intended to constitute legal, tax or investment advice. United Financial Systems, Corporation is not a lawyer, registered investment advisor or investment advisor representative, and is not engaged in the practice of law or the business of investment advice.