How to Get Prescription Insurance when on Medicare

Medicare does not provide coverage for prescription drugs. However, you can purchase a separate Medicare policy for prescription insurance. Drug costs are increasing in the United States. If you have to buy expensive drugs quite often, you should research your options.

Difficulty: Moderately Easy

Instructions

1. Contact your Medicare office and talk to a representative for assistance on prescription insurance.

2. Ask about the new Medicare prescription drug program that started in early 2006. Know the benefits and qualifying criteria of this program. If your earnings are not very high, then you will qualify for this plan that includes prescription payments.

3. Request an application form such as SSA 1020 (SSA stands for Social Security Administration). The Social Security office will determine your eligibility and process the form.

4. Evaluate the plan and its extent of coverage from previous Medicare benefits. This plan is different from the Medicare drug discount cards, which were discontinued in May 2006.

5. Learn about the monthly premiums for the new plan. Currently, it is around $35.

6. Study the level of coverage and pharmacies listed. You may not be eligible for this plan when buying from pharmacies not listed under the policy. Make sure the plan meets your medical needs.

7. Check the joining dates. You can change plans or join a new plan in the month of November/December every year.

Tips & Warnings

• When you apply, check your qualification status accurately. Even if you have a high income but low assets (excluding your home) and low savings, you are likely to qualify for the plan.
• Do not postpone your decision to join, as the rates can get higher in the future due to inflation.
• If you have any doubts, contact SSA and talk to their representative.