Starting January 1, 2006, Medicare will offer prescription drug plans to help

you pay for the prescriptions you need. If you don’t join a Medicare

prescription drug plan by May 15, 2006, you will pay a higher premium

unless you have drug coverage that, on average, is at least as good as standard

Medicare prescription drug coverage (such as from a former employer or

union). Your insurer will notify you before fall to let you know if your coverage,

on average, is at least as good as standard Medicare prescription drug coverage.

• To get Medicare prescription drug coverage, you must choose and enroll in a

Medicare prescription drug plan.

• You can first enroll in a Medicare prescription drug plan from November 15,

2005 through May 15, 2006.

• If you join by December 31, 2005, your coverage will begin January 1, 2006.

• If you join, your costs will vary depending on which plan you choose. In

general, you pay a monthly premium (generally around $37 in 2006) and a

yearly deductible (up to the first $250 in 2006). You will also pay a share of

your prescription drug costs, and your plan pays a share. Medicare helps pay

for drugs up to a limit ($2,250 in total) and once your total out-of-pocket

costs for drugs reach $3,600, you pay 5% of the costs and Medicare pays

95% of the costs for the rest of the year.

• Many people with limited income and resources will get extra help paying for

their prescription drug coverage. People with the lowest incomes and resources

will get the most help. If you are in this group, you will get information in

the mail this summer from the Social Security Administration (SSA) or from

Medicare telling you what to do.

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CENTERS FOR MEDICARE & MEDICAID SERVICES

Publication No. CMS-11065

December 2004

If you already have prescription drug coverage through your Medicare private

health plan or other insurance, check with your current plan to see if this coverage

is changing.

Unless you have other drug coverage that is, on average, at least as good as

standard Medicare prescription drug coverage, it’s important for you to join a

Medicare prescription drug plan when you are first eligible. For most people,

joining when you are first eligible means you will pay a lower monthly premium

than if you wait to join until later.

“Medicare & You 2006” handbook, visit www.medicare.gov on the web or call

1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

For more information on who can get extra help with prescription drug costs

and how to apply, call SSA at 1-800-772-1213 or visit www.socialsecurity.gov on

the web.

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CMS Pub. No. 11102

May 2005