December 8, 2005

Q:  I am worried because I haven’t selected a Medicare drug plan, and I hear I will have to pay a big penalty if I wait. My daughter is coming to visit in Feb. and I was hoping to get her help. Do I have to sign up before Jan. 1? -- Trudy

Dear Trudy,

Many seniors are worried about making a good decision about their prescription drug coverage, but the good news is you do not need to sign up for a Medicare drug plan by the end of 2005. In fact, you have until May 15 before you run the risk of paying a penalty for late enrollment. This should give you plenty of time to do some research and talk with your daughter before making a decision. 

The enrollment period for the new Medicare drug benefit runs from Nov. 15, 2005 through May 15, 2006. But, it is important that you take action by May 15 to avoid paying the late enrollment penalty. If you don’t sign up by May 15, you will need to wait until Nov. 15, 2006 to sign up for coverage for 2007.

And, unless you have good prescription drug coverage from another program or plan, such as an employer plan or through the Veterans Administration, Medicare will charge a 1% premium penalty for every month you wait to sign up. This premium penalty would increase the cost of your Medicare prescription drug coverage permanently.

If you would like to begin receiving Medicare drug coverage as soon as possible, you should sign up for a Medicare drug plan by Dec. 31, 2005. If you do, you will begin receiving drug coverage on Jan. 1. If you wait a couple of months to sign up, your coverage will begin on the first day of the following month.

Take your time in making this decision. Medicare’s new drug benefit is obviously a big change for people on Medicare.

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) 2005, Knight Ridder/Tribune News Service.

Distributed by Knight Ridder/Tribune Information Services.