Medicare Prescription Drug Coverage (Part D)

Summary Information for 2007

NOTICE: If you were covered in 2006, you should have received the "Annual Notice of Change" letter by

October 31, 2006. If not, call your plan and ask for it.

Very Important Dates to Note:

First	November 15, 2006	Begin Open Enrollment sign-up for Medicare drug coverage
Second	December 8, 2006	Recommended date to ensure Prescription Coverage on Jan 1.
Third	December 31, 2006	Last day of Open Enrollment for coverage beginning Jan 1, 2007

Estimated Cost for a Medicare Prescription Drug (Part D) Plan:

Ave. Monthly Premium	Annual Premium	Deductible	Minimum Annual Out-of-Pocket Cost
$30.00 (estimated)*	$360.00	$265.00	$625.00**

Several plans exist with different monthly premiums, and are described in Medicare & You 2007* – the official government handbook, pages 99-103. These costs are in addition to your Part B premium, or any other plan you may have. **If your annual out-of-pocket cost, i.e., copay, etc., exceeds this amount you might want to consider applying for Part D. Eligibility will depend on your current plan. Contact appropriate agency POC.

Important Notice: Each individual will need to make his/her decision based on current plans in effect and particular drug coverage needed. The Drug Plans offered under Part D use the formulary concept to determine their coverage. Certain drugs may not be offered under some plans. Plans are summarized in the aforementioned Medicare & You 2007. Medicare requires certain standard coverage, but one would need to call the plan POC to see if a particular drug is covered by that particular plan.

Pre-existing conditions that require a decision about Part D:

Condition	Possible Decision	Remarks
No Prescription Drug Plan	Apply for Part D	You will also need to apply for Parts A & B *
Original Medicare Plan only	Apply for Part D	Will pay about 50% of your annual drug costs
Original + Medigap w/o drug	Apply for Part D	Will pay about 50% of your annual drug costs
Original + Medigap w/drug	Apply for Part D	Better coverage at less cost
Employer/Union drug plan	Probably No	Plans vary –provider should notify you
FEHBP, TRICARE, VA	No	Coverage equals or exceeds Part D
Medicare Advantage Plan	Optional***	Provider should notify you of choices
Medicare Health Plan	Optional***	Provider should notify you of choices
State Medicaid full coverage	Apply for Part D	Will be automatically transferred if you don’t
Limited Income/Resources	Apply for Part D	Automatically transferred – State Assistance**
COBRA coverage	Apply for Part D	You will also need to apply for Part B
2006 Medicare D plan	Choice	If you stay with plan, automatic re-enrolled for 2007

Part B premium for 2007 is $93.50/mo. Assistance is available through your State Health Insurance Assistance Program **If you elect to purchase or keep these plans and they offer drug coverage, you must accept it and not apply for Part D.

Important Points of Contact (POC):

Contact	Website	Telephone	TTY
Coordinator of Benefits		1-800-999-1118	1-800-318-8782
DHHS Fraud Hotline		1-800-447-8477	1-800-377-4950
DoD/TRICARE		1-888-363-5433
FTC ID Theft Hotline	www.consumer.gov/idtheft	1-877-438-4338	1-866-653-4261
Medicare	www.medicare.gov	1-800-633-4227	1-877-486-2048
Office for Civil Rights		1-800-368-1019	1-800-537-7697
Railroad Retirement Board	www.rrb.gov	1-800-808-0772
Social Security Administration	www.socialsecurity.gov	1-800-772-1213	1-800-325-0778
St. Health Ins. Counseling Prog	www.shiptalk.org	1-800-677-1116
State Health Ins. Assist. Prog.		1-800-243-5463
Veteran’s Affairs		1-800-827-1000	1-800-829-4833

The Standard Medicare Benefit:

If your costs are:	Medicare drug plan pays:	*And you pay:
$0 - $265 (deductible)	$0	Up to $265
$266 - $2400	75% up to $1601.25	25% up to $533.75
$2401 - $5451.25 (the donut hole)	$0	100% up to $3051.25
Maximum payments at this level =	Up to $1601.25	Up to $3850 out-of-pocket
Over $5451.25 (catastrophic coverage)	95%	5%, or copay $2.15 generic, $5.35 brandname
*Assuming no other drug coverage.

Disclaimer: The foregoing information has been gleaned from the following publications and documents: Medicare & You 2007, AARP Nov 2006 pp14-17, and The Huntsville Times Nov 14, 2006 . First Baptist Church of New Hope offers the above summary information for the benefit of its senior members and family, and assumes no responsibility for any decisions made. Decisions must be based on source documentation and/or consultation with appropriate agencies.