Medicare Enrollment Deadline Approaching
May 15 is the final day to sign up for Medicare drug enrollment. The article lists four primary groups of people who have not enrolled:
At the top of the list are those who have no drug expenses now. "They don't think they need a plan. But that's not right. You should enroll so you preserve your options for the future," he said. "The second group just thinks it's for low-income citizens. That's not true either," he said. Procrastinators make up the third group. Finally, some people just do not want to sign up for a government program, he said.
Unless I'm totally missing something, and I hope I'm not because I have not signed up my mother for the plan, there is another group for whom it does not make sense to sign up: Those with health insurance that pays prescription drug benefits. So long as the insurance company has sent you a letter saying that your current plan provides equal or better benefits than Medicare (called "creditable coverage"), there is no reason for you to enroll. The letter will be sent annually, and if the coverage goes below Medicare levels, you will be able to enroll in Medicare at that time without paying higher premiums for late enrollment. Here's the pertinent paragraph:
However, Medicare D is not for everyone. Like you, some retirees received prescription drug benefits through a company-sponsored retiree medical plan where they receive better coverage. So, even though you have a choice to enroll in Part D, you don't have to if you are getting better benefits from another source. As described below, your XXX retiree medical plan does provide you with better benefits than Medicare Part D's Standard Plan, at least for next year.
People who enroll in Medicare lose thier drug coverage under their private insurance plan, since duplication is not allowed.
The federal goverment pays a subsidy to the private insurer since they and not the Government are paying for the prescription drug benefit for the insured. Thus, it is in the employer-insurer's best interest to continue providing medical and prescription benefits.
Also, those who do not sign up for Medicare Part D will still be covered for drugs under Part B, such as drugs administered in a doctor's office.
This is all so confusing. I worry about the elderly who don't have anyone to make the calls for them to find out what they should do. And, there's always the chance that Medicare might be better for my mother and I'm just getting spin from her insurer who wants to keep her business.
Have any of you been dealing with making these decisions for parents or others unable to make them for themselves?
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