First let me say BE CAREFUL.. don't sign anything until you have had time to discuss the sales persons plan with your pharmacist, it may or may not be accepted. Naturally some sales people only care about commissions and will say anything just to get your signature, so please be cautious.

What if I don’t use prescription drugs right now?
If you don’t take any medications right now or need them only occasionally, you may be wondering—is it worth signing up? After all, you would be paying premiums even if you didn’t need any prescriptions or if you don’t pay much for the drugs you now take. One answer is that, like any insurance, drug coverage gives you protection against high drug costs if and when you need it. And, if you don’t have drug coverage from another source, there will likely be an added cost (late enrollment penalty) if you wait and enroll later than when you were first eligible to do so. The longer you wait, the more you will pay for Medicare drug coverage.

How the Late Enrollment Penalty Works
The penalty for signing up late makes your premium higher—generally an extra 1 percent of the national average premium for each month that you wait—and you will have to pay the higher premium for as long as you have Part D.

For example, suppose you waited 3 years (36 months) before signing up for Medicare drug coverage and the national average monthly premium for the year is $27.35 (as it was in 2007), this would mean paying roughly an extra $10 per month on top of your premium (1% x $27.35 = .2735¢ x 36 months = $9.85). You would pay your premium plus $9.85 each month. The national average premium (as determined by Medicare) changes each year, and your penalty will increase every year, too. By waiting to enroll, you could end up paying a whole lot more for the same coverage than if you signed up when you were first eligible. You will receive a letter from Medicare if a late enrollment fee is being added to your costs.

What if I already have drug coverage?
People who now have prescription drug coverage will need to compare their coverage with what they can get through a Medicare drug plan.

If you have coverage through your current job or a retiree benefit, it may offer:

• Drug coverage outside of Medicare;
• Drug coverage through Medicare;
• A supplement to Medicare’s drug coverage such as help paying the premiums, coverage in the gap, or a lump-sum subsidy; or
• No drug coverage at all.

Your employer or union must send you a written notice telling you whether the coverage they provide is at least as good as Medicare’s standard drug coverage. If it is, it is known as “creditable” coverage. You can keep this coverage knowing that if your employer or union decides to stop offering creditable coverage at some point in the future or the coverage changes so it is no longer at least as good as Medicare’s, you will not have to pay a penalty provided that you sign up for a Medicare drug plan before going 63 days without coverage.

If Medicare’s coverage is better than that provided by your employer or union, you should discuss your choices with your employer’s or union’s health plan administrator.

If you are thinking about enrolling in a Medicare drug plan, IT IS VERY IMPORTANT to find out how your employer’s plan fits in with Medicare drug coverage—in particular, whether you can continue your medical and hospital coverage if you enroll in a Medicare drug plan. In some cases, joining a Medicare drug plan would automatically cancel your employer’s medical coverage and if you give up this coverage, you probably will not be able to get it back. It also may affect health care coverage for other family members on your employer-sponsored health plan. (On the other hand, some employers insist that retirees and active workers over age 65 can keep their medical benefits only if they join a Medicare drug plan. So it’s important to check.)

After a review of your health coverage, you may decide to drop your employer’s creditable drug coverage and enroll in a Medicare drug plan. You’ll need to check with your health plan’s administrator and the drug plan to coordinate this change in order to avoid paying a late enrollment penalty.

If you have a Medigap policy (also known as Medicare Supplemental Insurance) that does not cover prescription drugs, you can enroll in a Medicare drug plan in the usual way (meaning that you can keep your Medigap policy and also purchase a Medicare Part D policy.)

But, if you still have a Medigap policy that includes prescription drug coverage, you cannot enroll in a Medicare drug plan. You have to choose between the two types of coverage. Drug coverage through a Medigap policy is usually not as good as Medicare’s drug coverage. Although you have the choice of keeping your Medigap drug coverage, you would probably pay a late enrollment penalty if you decide to enroll in a Medicare drug plan in the future. However before making a decision, you should be sure you can still get supplemental coverage to meet your needs and carefully compare your Medigap policy against Medicare drug plans you’re considering.*

If you have Medicaid, you will be automatically enrolled in a Medicare drug plan when you become eligible for Medicare. You will want to review whether the plan chosen for you provides all the drugs you take or lets you use your neighborhood pharmacy. As long as you are enrolled in Medicaid, you will be able to change to another plan at any time. The change will take effect the following month.

If you are in a state pharmacy assistance program, other than Medicaid, the program may supplement Medicare’s coverage to give you even greater savings or help with costs in the coverage gap. Each state with a prescription drug assistance program works differently (See “Where Can I Get Help with the Costs?” page 21.) If you are in a drug manufacturer’s patient assistance program and get one or more drugs for free or at a reduced cost, you may be able to continue to do so as well as have Medicare coverage–as long as you still qualify for the assistance. Check with the program. You will not be able to get the same drug from the assistance program and from your Medicare drug plan. [You can use a drug manufacturer’s program to help pay for a drug you get from a Medicare drug plan while you’re in the coverage gap, but you can’t count this assistance towards your True Out-of-Pocket (TrOOP) costs that would qualify you for catastrophic coverage.]

If you have Veteran’s (VA) health benefits, TRICARE, Indian Health Service (IHS), or Federal Employees Health Benefits, your drug coverage may already be as good as Medicare’s. Your plan’s sponsor should provide you with a written statement telling you if your coverage is at least as good as Medicare’s standard drug coverage. If you buy your drugs from another country: While this practice is still illegal, many Americans have turned to buying their drugs from abroad, mainly Canada, to get relief from high prices. Here are some points to consider:

• If you enroll in a Medicare drug plan, your plan will not cover drugs purchased from non-U.S. pharmacies.
• You may pay less for these drugs in the coverage gap by purchasing them from abroad, but they would not count toward your True Out-of-Pocket (TrOOP) maximum that qualifies you for catastrophic coverage.
• If your drug needs change and your total costs become very high, Medicare’s catastrophic coverage would give far greater protection than foreign prices.

How do I compare Medicare drug plans?

Look at several different plans available in your area before deciding which one best meets your prescription drug needs. It is easier to compare plans if you make a list of all the drugs you are taking, their strengths (e.g., 10 mg), and how often you take them.

You can make comparisons between drug plans in your area (the prices they charge, which pharmacies you can use, and the drugs they cover) by using the Medicare Plan Finder at www.medicare.gov. To get started, click on “compare Medicare drug plans.” You can also call one of Medicare’s specially trained telephone operators at 1-800-633-4227 (TTY 1-877-486-2048) who can provide the same information. If you need assistance, contact your State Health Insurance Assistance Program (SHIP).