Iowans insured by Medicare will receive important information in the mail by mid-October from the federal government about the first-ever voluntary Medicare prescription drug benefit that will begin January 1, 2006.
Take the time to read through the handbook "Medicare & You," which will outline the drug-benefit plans available in your area. Ask a trusted friend or family member to help.
As people age, we tend to depend more upon modern medicine to maintain good health and a good quality of life. For many beneficiaries, prescription drugs are an integral part of a daily health care regimen. The numbers bear this out: a Medicare beneficiary can expect to spend on average $1,139 out of his or her own pocket on prescription drugs in 2005.
The initial enrollment period for the Medicare drug benefit will run from Nov. 15, 2005 through May 15, 2006. You may join 24 hours a day on-line at www.medicare.gov or by calling toll-free 1-800-Medicare. You also can join by contacting the organization offering the plan you choose.
Signing up by Dec. 31 will ensure your coverage begins on Jan. 1. Enrolling after May 15, 2006 may result in a higher monthly premium unless you are switching from a plan that provides coverage at least as good as the Medicare drug benefit.
I understand it’s no picnic when it comes to sorting through the fine print for health insurance. It even may rank among the most unpopular and complicated responsibilities of American adulthood, like deciphering your tax return by April 15th every year.
The good news is that several resources are available to help navigate the Medicare drug-benefit plans. An interactive tool on www.medicare.gov soon will be on-line to help people do comparison-shopping with drug-benefit plans being offered in your area. And in Iowa, beneficiaries may contact a representative from the Iowa State Health Insurance Information Program (SHIIP) at 1-800-351-4664 for personalized assistance. Local area agencies on aging also are providing assistance.
The Centers for Medicaid and Medicare Services, the federal agency which administers the Medicare program for 43 million disabled and older Americans, has carefully reviewed the organizations that will offer the prescription drug benefit to ensure all federal requirements are met to serve Medicare beneficiaries. These organizations must meet very specific rules to ensure good access to community pharmacies and the drugs that beneficiaries need.
As Congress intended, the competition among private insurers in the marketplace appears to be helping hold down costs for the new drug benefit. In Iowa, 17 organizations will offer stand-alone prescription drug plans. Two of these organizations will offer plans with monthly premiums of less than $20. Iowa beneficiaries also can get drug coverage with additional benefits and even lower total out-of-pocket costs by enrolling in Medicare Advantage plans. The Medicare Advantage options include a new statewide PPO plan.
As chairman of the Senate Finance Committee, I steered through Congress the landmark law that addressed the benefit vacuum facing millions of current and future Medicare beneficiaries: prescription drug coverage.
Modern medicine relies heavily on pharmaceuticals to cure, treat and prevent chronic illnesses, pain and disease. Medicare benefits were stuck in the 1960’s era of medicine. Until now, 40-year-old Medicare did not offer a permanent, comprehensive drug benefit to its beneficiaries.
That’s why we worked to improve Medicare and update it for 21st century retirees. The new Medicare law also provides for preventive health screening benefits, including checks for high cholesterol, diabetes, bone mass measurements, annual mammograms and flu shots.
Leading bipartisan negotiations, I carefully weighed the impact on the federal budget and future generations of taxpayers with the goal of offering a comprehensive, voluntary and affordable drug benefit. That’s why the new law targets assistance towards lower-income beneficiaries and those facing catastrophic prescription drug costs.
Medicare beneficiaries in these situations should take extra care to look at how helpful the new benefit could be to them. And everyone on Medicare should check out the new Medicare drug benefit by year’s end. Choosing the right coverage could go a long way towards helping you improve your financial and personal health in the long run.