March 9, 2006

Q: I am a 78-year-old on Medicare and have been getting my drugs from Canada. I recently did some math and am convinced that it is cheaper to get my drugs from Canada, rather than from a new Medicare drug plan. What should I do?  -- Harry

Dear Harry:

With the rising cost of prescription drugs, seniors have looked across the border to find more affordable medications in Canada. With the Medicare prescription drug benefit now available, many are revisiting this decision.

The Medicare prescription drug benefit is new, so it is hard to say whether you will save money over time if you sign up rather than continue to purchase your drugs from Canada. Still, there are good reasons to think about signing up for a Medicare drug plan instead.

The Medicare drug benefit, that is being offered by numerous private companies throughout the country, is subsidized, which means the program covers a share of your drug expenses. You may find savings on some of your more expensive drugs if you sign up for a plan that covers these medications. In addition, the drug benefit offers catastrophic coverage which can be quite helpful for people with more than $3,600 in out-of-pocket spending for prescriptions this year. It is important to note that if you do not sign up for the Medicare drug benefit before the May 15 enrollment deadline, you will face a late enrollment penalty if you decide to sign up in the future.

Also, you should know that the Food and Drug Administration (FDA) strongly advises against buying medicines from outside the U.S., citing serious safety and effectiveness concerns. And, under current federal law, it is illegal for any drug made in the U.S. to be exported and then imported back into the U.S., which is often the case for drugs purchased from Canada. While the FDA has yet to enforce this law on seniors who buy their prescriptions from Canada, it has been intercepting more shipments from Canada, which may prevent people from receiving their ordered drugs.

This column was prepared by the Kaiser Family Foundation, an independent, non-profit private foundation based in Menlo Park, Calif., that is not affiliated with the Kaiser Permanente health plan. Do you have questions about the new Medicare drug benefit? Send your questions to Medicare Q and A. The Kaiser Family Foundation. 1330 G St., NW. Washington, DC  20005 or MedicareQ@kff.org. 

(c) 2006, Knight Ridder/Tribune News Service.

Distributed by Knight Ridder/Tribune Information Services.