Medicare Part D
Deadline May Be Waived - How to Choose A Plan and Calculate the Late
Enrollment Penalty
May 16th 2006
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Medicare Card |
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The Senate may move the Medicare Part D enrollment deadline for those
who have not already signed up. Technically, the senate is considering
a waiver. Charles Grassley, the Senate Finance Chairman, has introduced
a $1.7 billion measure to suspend a penalty for elderly Americans who
missed yesterday's deadline for enrolling in the new Medicare drug
benefit.
For those who have not enrolled, the penalty could add a number of
dollars to each month’s premium. The penalty amounts to 1 percent of
the state average (some experts say it is the national average and
others believe it could be the regional average) premium for each month
you delay enrollment after May of this year. Here is an example: If
you wait until 2011 to sign-up, you will be penalized for 66 months. If
the state (or region) average premium is $40 per month at the time you
enroll in 2011, and you choose a plan that costs $30 per month, your
monthly premium will be $30 plus $26.80.
The $26.80 is calculated by multiplying $40 by 66% (or .66). The 66
percent comes from the fact that you were 66 months late signing up.
Now instead of paying a $30 premium, you will be charged $56.80 ($30 +
$26.80). Seniors should consider signing up as soon as possible to
avoid the penalty.
But what plan should you choose? The first thing you need to do is
write down all the medications you take. After this is done, start
investigating the plans available in your state. This can be done at
the
Medicare website. You will be asked some questions including your
Medicare claim number, name, date of birth and if you are a member of
Part A or B.
Some Senators have claimed that the plan is too complicated. There are
deductibles, premiums, co-pays and other things that need to be
considered when choosing a plan. Some senior citizen centers may be able
to help you decide which plan is right for you. AARP might also be a
useful source of information. There is a program for low income
participants called Extra Help.
Dan Wilson
Best Syndication
Health
Insurance
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