Medicare Part D Prescription Coverage

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, also known as the Medicare Modernization Act (MMA), established a voluntary prescription drug program known as Medicare Part D, effective January 1, 2006.  Additionally, MMA provides a program for certain low income individuals to receive subsidies to pay premiums, deductibles, and copayments under Part D.  Medicare Advantage participants may have coverage through their plans. Beneficiaries will pay a monthly premium and a yearly deductible.

For 2006:

• The monthly premium is about $35.
• The annual deductible is $250.
• After the deductible has been paid, the insured person pays a 25% copay for the next $2,000.
• After the copay has been paid, the insured must pay 100% of charges for the next $2,850.
• After the insured has incurred $5,100 in covered expenses, the insured pays a copay of about 5%.