Medicare Rx Benefits: FAQs on Prescription Drug Coverage

Beginning January 1, 2006, Medicare will offer insurance coverage for prescription drugs for all people with Medicare. You may sometimes hear this coverage referred to as "Part D." This coverage is designed to help you save money on your prescription costs. It will pay for some, but not all of your prescription costs.

FAQs for People on Medicare and Medicaid (dual eligibles)

If My Prescription Drugs Are Covered by Medicaid, Does This Affect Me?

One of the major changes under the law that created the new Medicare Prescription Drug Benefit is that people who have both Medicare and Medicaid will now receive their prescription drug coverage through Medicare, rather than their state Medicaid program. If you have Medicare and your prescriptions are currently covered by Medicaid, as of January 1, 2006, you will receive your drug coverage through the Medicare Prescription Drug Coverage.

Do I Need to Sign Up for the Medicare Prescription Drug Coverage or for Extra Help?

If you have both Medicare and Medicaid, you should automatically receive the Extra Help for people with limited incomes and resources available through the new Medicare Prescription Drug Coverage. You do not need to apply for it. In fact, you should have received a letter from Medicare during the summer of 2005 explaining this.

But you will need to sign up for a drug plan. If you do not choose a plan on your own before December 31, 2005, Medicare will assign you to a plan so that you will still have drug coverage come January 1, 2006 after your Medicaid drug coverage ends.

However, the plan Medicare assigns you to will be chosen at random. It may not be the plan that best meets your needs. So your best bet is to do your homework, and make an informed choice about which plan is right for you.

What If I Don't Like the Plan to Which I Am Assigned?

If you don't like the plan to which Medicare assigns you, you can change as often as once a month.