• Premiums –The average monthly premium in 2007 will be $24 vs. the $32 average in 2006
• “Coverage Gap” – Some Medicare Part D prescription drug plans are offering coverage options for the “coverage gap.” There may be plans in your area that will provide coverage of generics and some brand name drugs in the coverage gap.

Open enrollment period was November 15 through December 31, 2006. Anyone enrolling after December 31 will be charged a penalty. Coverage began on January 1, 2007.

Fast facts on how Medicare Part D prescription drug coverage works.

You may choose from at least two Medicare prescription drug plans in your area

If you have limited income or few assets, you may be able to receive additional help from Medicare. In such cases you will not have to pay deductibles or premiums and your co-pay amounts are reduced as well.

Most people will pay on average a $24 premium per month vs. the $32 average in 2006. You will also have to pay a deductible that can be up to $265 in 2007 vs. the $250 deductible in 2006.

After deductibles are met, the plan will then pay up to 75 percent of the prescription drug cost.

Once a combined total of the prescription drug costs paid by you and by the plan reaches $2,400, in 2007 (vs. $2250 last year) you will have reached your initial coverage limit.

At the initial coverage limit, the plan no longer covers or provides limited coverage of your prescription costs. You have reached the coverage gap, or “donut hole,” as it is sometimes called. In 2007, this coverage gap extends to out-of-pocket expenditures of $3850.

When your out of pocket costs for prescriptions in 2007 reach $3850, you will have reached the catastrophic coverage level of the benefit. Medicare and your Medicare Part D plan will provide 95 percent coverage of prescription drugs for the rest of the 2007 plan year.

For complete information, be sure to contact Medicare at:
www.medicare.gov or 1-800-633-4227 (1-800-MEDICARE)