Transcripts

"Money File"- Medicare Drug Plan Motivation

SUSIE GHARIB: Tonight's "money file" commentator says if you want to enroll in a Medicare drug plan this year, you'd better get moving. Here's Terri Cullen, personal finance columnist at the "Wall Street Journal" online.

TERRI CULLEN, REPORTER, THE WALL STREET JOURNAL ONLINE: If you're enrolled in a Medicare prescription drug plan, you'll likely be paying more next year. A recent report found that 77 percent of seniors enrolled in these drug plans will have higher premiums in 2007. The good news is that many will see premiums increase by less than $5 a month. A recent online journal/Harris interactive poll also found that 70 percent of seniors said they saved money with these plans.

If you're 65 or older and you want to enroll in a Medicare drug plan this year, you need to get moving. The annual enrollment period for the drug benefit runs from November 15 to December 31 and the plans go into effect January 1. The easiest way to compare benefit plans is by using the plan finder tool located on Medicare's web site and your pharmacist is a good resource to help you figure out which benefit plan is right for you. For people who don't spend a lot on medication, a plan with a low premium might be your best bet. Of course, you get what you pay for. Low premium plans don't have the most generous coverage and generally they come with a $250 annual deductible.

Seniors with chronic conditions who take many medications should consider a more comprehensive plan, one that covers the so-called donut hole gap before your insurance coverage kicks in. Also, ask how your share of the costs is figured. With some plans, you make a flat co- pay for each prescription. With others, you pay a percentage of the total cost. That can add up for people with expensive medications. Finally, check to ensure your plan will pay for your types of medications. Many plans have restrictions on brand-name drugs. I'm Terri Cullen.