What You Should Know about Medicare Prescription Drug Coverage
The 2008 open enrollment for Medicare Part D Prescription Drug Coverage ends Dec. 31, 2007. Before  selecting a prescription drug plan (PDP) or changing your coverage, the South Dakota Division of  insurance suggests you become informed about your coverage options.

What if I am already enrolled in a Medicare prescription drug plan?

Plans might change from year to year. Therefore, you should carefully examine all available plans during each open enrollment season, as you may find that your current plan no longer best meets your needs. Be sure to check the features of your plan, including the list of drugs covered and the amount of premium you pay. If you are satisfied with your current plan, you do not need to do anything to keep your plan. If you take no action, you will remain in your current plan.

What if I am enrolled in a Medicare Advantage Plan with prescription drug coverage?

Medicare Advantage plans might also make changes to important features of your plan from year to year, including the list of drugs covered, the premium you pay, cost-sharing requirements and provider networks. Your plan options should be carefully reviewed during each open enrollment season. If you take no action, you will remain in your current plan.

Do I need a Medicare prescription drug plan?

A Medicare prescription drug plan may provide more coverage than a Medicare supplement insurance (Medigap) policy or employer-provided prescription drug coverage. If Medicare considers your employer-provided drug coverage “credible” – meaning, coverage that is as good as the Medicare prescription drug coverage benefit – you are permitted to keep your current coverage without incurring future penalties. Check with your employer.

Enrollment Dates and Late Enrollment Penalties

Voluntary enrollment for Medicare prescription drug plans for 2008 began Nov. 15 and
ends Dec. 31, 2007. If you enroll by Dec. 31, your new Medicare prescription drug
coverage will begin Jan. 1, 2008.

If you are eligible, but wait to enroll after Dec. 31, you may be subject to late enrollment
penalties. These penalties are generally 1% per month for every month you delay
enrollment. That means if you wait until March, you would pay a 3% late enrollment
penalty. There is no limit on the penalty, so the longer you wait to enroll, the higher the
premium you will pay.

What are my options if I want to enroll in a Medicare prescription drug plan?

You can enroll in a stand-alone prescription drug plan (Medicare Part D) or you can
choose a Medicare Advantage plan (Medicare Part C) that includes the new drug benefit.

You will want to compare plans and select the one that best meets your individual needs.
Here are a few things to check:


The Medicare Prescription Drug Plan Finder can be accessed at www.medicare.gov.

Medicare Fraud

Unfortunately, not everyone who contacts you about switching to a Medicare drug plan has the best intentions. To protect yourself from scam artists intent on taking advantage of your situation, here are some tips to avoid becoming a victim:

Other Important Things to Consider

Federal assistance with premiums will be available to Medicare beneficiaries who meet
certain income requirements. Medicare beneficiaries may seek assistance in reviewing
options for coverage and obtaining financial assistance by contacting their local
Department of Social Service office. A list of Department of Social Services is available
at http://dss.sd.gov/offices/. Another source of information or assistance may be your
local licensed insurance agent.

For more information on Medicare Part D visit www.medicare.gov. If you have additional  questions, please contact us at South Dakota Division of Insurance, 445 E. Capitol Ave, Pierre SD 57501, (605)773-3563 or our website www.state.sd.us/insurance .