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Medicare
It seems that every time we listen to the radio or television, Medicare is the hot topic of the day. With the aging of our society, we are all concerned about how much we will have to pay for our healthcare during retirement.While many believe the new law will entitle seniors to full prescription drug coverage, the reality is that the prescription drug coverage is limited. This is a list of common questions. You will find resources for additional information at the bottom of the list.
Common Medicare Questions
I'm not eligible for full retirement benefits until I am 67. I heard that I can sign up for Medicare before I retire? Is that true?
Yes. 65 is the magic number for Medicare, if you meet the qualifications, i.e, you have paid into the Social Security system.
When will Medicare begin paying for prescription drugs?
On January 1, 2006 prescription drug coverage will be available through the Medicare program.
Will Medicare beneficiaries automatically receive the new drug benefit in 2006?
No. You must enroll and pay the monthly premium (currently $35). You may sign up for Medicare Part D beginning November 15, 2005 through May 15, 2006. After that, general enrollment will be November 15 through December 31 of each year with benefits starting January 1 of the following year.
What will the new Medicare prescription drug benefit cover?
Each year, you will pay the first $250 of prescription medications. Then Part D will pay 75%, and you will pay 25% of the next $2,000 in drug costs. You will pay the entire cost of your medications between $2,000 and $5100 annually. If your prescription drug costs exceed $5100 in one year, you will then pay a 5% co-payment for your medications. |
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