Medicare prescription drug coverage is insurance that covers both brand-name and generic prescription drugs at participating pharmacies in your area. Medicare prescription drug coverage provides protection for people who have very high drug costs or from unexpected prescription drug bills in the future.

Eligibility

• Everyone with Medicare is eligible for this coverage, regardless of income and resources, health status, or current prescription expenses.

• You may sign up when you first become eligible for Medicare (three months before the month you turn age 65 until three months after you turn age 65). If you get Medicare due to a disability, you can join from three months before to three months after your 25th month of cash disability payments. If you don't sign up when you are first eligible, you may pay a penalty. If you didn't join when you were first eligible, your next opportunity to join will be from November 15, 2009 to December 31, 2009.

• Your decision about Medicare prescription drug coverage depends on the kind of health care coverage you have now. There are two ways to get Medicare prescription drug coverage. You can join a Medicare prescription drug plan or you can join a Medicare Advantage Plan or other Medicare Health Plan that offers drug coverage.

• Whatever plan you choose, Medicare drug coverage will help you by covering brand-name and generic drugs at pharmacies that are convenient for you. 
  

Premium

• Like other insurance, if you join, generally you will pay a monthly premium, which varies by plan, and a yearly deductible. You will also pay a part of the cost of your prescriptions, including a copayment or coinsurance. Costs will vary depending on which drug plan you choose. Some plans may offer more coverage and additional drugs for a higher monthly premium. If you have limited income and resources, and you qualify for extra help, you may not have to pay a premium or deductible.

How to Apply

• You can apply or get more information about the extra help by calling Social Security at 1-800-772-1213 (TTY 1-800-325-0778) or by visiting www.socialsecurity.gov on the web.

Advantage

• Medicare prescription drug coverage provides greater peace of mind by protecting you from unexpected drug expenses. Even if you don't use a lot of prescription drugs now, you should still consider joining. As we age, most people need prescription drugs to stay healthy. For most people, joining now means protection from unexpected prescription drug bills in the future.

Resources

• There is extra help for people with limited income and resources. If you qualify for extra help, Medicare will pay for almost all of your prescription drug costs. You can apply or get more information about the extra help by calling Social Security at 1-800-772-1213 (TTY 1-800-325-0778) or visiting www.socialsecurity.gov on the web.

• If you want to make more specific plan comparisons based on what matters to you, you can get personalized information from the Medicare Prescription Drug Plan Finder . The Medicare Prescription Drug Plan Finder can be accessed at www.medicare.gov, or through a customer service representative at 1-800-MEDICARE, or through the many organizations working with Medicare to help people take advantage of the new drug coverage.

• The AARP Bulletin Today also provides  explaination online about the Medicare Prescription Drug Coverage.  Click HERE to find out more.

Medicare Fraud Warnings

To protect the Medicare consumers from being taken advantage of, the following information is provided by the National Consumers League's Internet Fraud Watch:

• Check the list of Medicare-approved prescription drug plans. The list of approved plans and other information about the program are available at www.medicare.gov and by calling toll-free, 1-800-633-4227 (TTY users should call 1-877-486-2048.) Medicare prescription drug plans, which will be offered by private companies and organizations, must meet specific federal standards and be approved by the Centers for Medicare & Medicaid Services in the U.S. Department of Health and Human Services (HHS).

• If someone says you must join or you’ll lose your other Medicare benefits, it’s a scam. The Medicare prescription drug benefit is voluntary. It supplements your other Medicare benefits.

• Guard your personal information from identity thieves posing as sales people. Legitimate plans may ask for your Social Security number, but only when you are actually enrolling. And they may only ask for your credit card or bank account information if you are arranging to make automatic payments for your drug coverage from that account.

• If someone claims to be calling from the Social Security Administration (SSA) and asks for your bank account, credit card, or life insurance policy numbers, it’s a scam. SSA will never ask for that information, and the only time someone calling from the SSA will ask for your Social Security number is if you applied for low-income assistance and the number you put on your application wasn’t correct.

• Know the law on how Medicare prescription drug plans can be marketed. It’s illegal for companies or organizations marketing Medicare drug plans to come to your door uninvited or to send you unsolicited emails. Companies and organizations can call to promote their drug plans, but it’s illegal for them to sign people up during those calls. They must also obey telemarketing laws: it’s illegal to call before 8 am or after 9 pm; call people whose telephone numbers are on a state or the federal "do not call" registry (with some exceptions); or call people who have asked not to be called again. For more information about your telemarketing rights and to put your phone number on the federal "do not call" registry, go to www.donotcall.gov or call 1-888-382-1222.

• Medicare prescription drug plans should come with no strings attached. Companies and organizations can offer modest prizes or gifts (but not cash) to promote their Medicare prescription drug plans – for instance, to people who attend a sales presentation – but it’s illegal to require anyone to join a drug plan in order to get a prize or gift.

• Don’t be fooled by sales materials that look like they’re from the government. Con artists often try to impress consumers with official-looking sales materials that look like they’re from a government agency. Since it is private companies who are offering the plans, be skeptical about promotional materials claiming to come from the government.

• Don’t confuse other types of drug coverage with Medicare prescription drug plans. Only plans approved by Medicare can be marketed as Medicare prescription drug plans. Approved plans will have a seal on their materials with "Medicare Rx" in large letters and "Prescription Drug Coverage" in smaller letters under that. Check with Medicare to make sure that the plan you’re considering is approved.