How to Compare Medicare Drug Plans

It is important that you decide which Medicare Drug Plan is right for you, before you you enroll with any plan. Remember, these Plans are offered through private companies, NOT Medicare. So, like any other purchase you have choices and you need to be an informed consumer.

When you find some drug plans you are interested in, call the companies that offer the plans and use the chart below to compare information about these plans. The steps below will help you complete the chart. The chart isn’t part of the enrollment process, just a tool to help you organize the information.

Step 1: Find out which drugs you use now and the cost.

• Determine what you pay for drug costs currently.
• Use this Medicare Drug Plan Cost Estimator provided by CMS to estimate how much you will save (or not) using a Medicare Drug Plan, generally.
• But, each Drug Plan is different so you will need to do more research to find the Drug Plan that is right for you. Proceed to Step 2 and keep going.

Step 2: Find out which drugs you use now, the cost, and which plans cover your drugs.

Step 3: Find out the costs of each drug plan.

Medicare drug plans can vary on how much they charge and how much they cover. Choose the Medicare drug plans you want to know more about and compare the following for each plan:

• Premium. This is the monthly payment you make to get coverage.
• Deductible. This is the yearly amount you pay before your Medicare drug plan begins to pay.
• Coinsurance or Copayments. This is your share of your prescription drug costs. Medicare and your drug plan also pay a share of the costs.
• Coverage limits. Some plans may have you pay all drug costs beyond a certain limit.

If you have limited income and resources, you may qualify for extra help paying for Medicare prescription drug coverage that can lower or even eliminate these costs. Medicare mailed letters to people who automatically qualify for extra help in May and June. If you didn’t automatically qualify, the Social Security Administration (SSA) sent people with certain incomes an application for this extra help. If you didn’t get an application but think you may qualify, call 1-800-772-1213. TTY users should call 1-800-325-0778. You can also visit www.socialsecurity.gov on the web, or apply at your State Medical Assistance office.

Step 4: Find out each plan’s pharmacy and mail order options.

Step 5: Use this Chart to organize your Medicare Part D research

The Center for Medicare & Medicaid Services offers this helpful chart to organize your research about Medicare Drug Plans. (http://www.medicare.gov/Publications/Pubs/pdf/11110.pdf)

Step 6: Decide

Remember that unless you already have a drug benefit that is as good as Medicare Part D, you must enroll by May 15, 2006 or you must pay extra to join later.

Make a Plan and follow it. If you get stuck, be sure to check our additional resources for more help.