The time to sign up for prescription drug coverage is between November 15 and December 31, 2005 for anyone currently eligible for Medicare. Remember, you DO have to sign up! The coverage doesn't happen automatically. If you sign up by Dec. 31, 2005, your coverage will begin Jan. 1, 2006. If you select a policy with a deductible, this will give you the maximum time to meet your deductible and derive the benefits of the insurance coverage. But you actually have until May 15, 2006 to sign up for the prescription drug coverage without a financial penalty.
After May 15, your premium will always include a penalty of an additional 1% for each month you waited to sign up for the coverage. And if you don't sign up by May 15, 2006 you will have to wait until the open enrollment period of November 15 — December 31 of each year.

Do you already have prescription drug coverage through a health insurance plan? If so, you should get a letter from your company that will explain if the Medicare coverage will be better than what you have. If your current coverage is better, you'll probably keep your current coverage-- Be sure to keep this letter! That way, if you decide to switch to Medicare in the future, you'll not have to pay the penalty for late enrollment.

Currently in Missouri there are 16 companies offering Medicare Prescription insurance with many of these offering more than one policy. Each plan has to, at least, meet the basic Medicare guidelines, while many go beyond basic coverage.
Plans differ in three basic areas:

Drugs Covered
Each insurance plan has a list of covered drugs--generic and brand name. This list of drugs is called the formulary. Drugs will be listed in groups, with each group called a therapeutic or medical class. There will be at least two drugs for each therapeutic class. Your first task is to find a plan that lists the drugs that you take! The easiest way to do this is to do it on the Internet. If you aren't comfortable with computers, find someone who is and ask for their help. The web site is: www.medicare.gov.

When you go to that web site, click on "Formulary Finder," put in your state of residence and then put in your prescription drugs by name. The program will then give you a list of the insurance policies that have all of the drugs you are taking on their formulary. You can also get help from either the Medicare 800 number (1-800-MEDICARE) or you can contact the Missouri State Health Insurance Assistance program (1-800-390-3330). Before you call either number, write down the drugs that you take and have the list in front of you. Expect to have a wait if you call either of these numbers for assistance.

Cost Structure
   One of the basic considerations about which plan will work best for you will be the cost. Part of the cost is the monthly premium. In Missouri, premiums vary from less than $20 a month to over $60 a month. The average cost is $32. Some of the policies have up to a $250 deductible while some have no deductible. At least one policy offers coverage on brand name drugs in what is typically referred to as the coverage gap and several policies will cover generic drugs in the coverage gap. Some plans are available with no premium for individuals who qualify for the low income subsidy.

Where You Buy Your Prescriptions
Some drug plans will be restrictive about where you can purchase your prescriptions. Some offer mail order service in addition to pharmacy service. Make sure the plan you select includes
pharmacies that are convenient to you.

It's important to have a basic understanding of how the plans will work! Some plans will have a deductible. The deductible can be no more than $250. Once you have met the deductible, there is usually a co-pay of 25% of the prescription cost until your prescriptions total $2,250. This is where you reach what is called the coverage gap. Some plans may offer no coverage in this gap until your out-of-pocket costs reach $3,600.