The New Medicare prescription drug plan went into effect this year, and many people are still confused by the vast array of options and prices available to them. Here are answers to some of the most crucial questions regarding Medicare Part D:

Should I enroll for the new Medicare drug benefit?

That depends on your current prescription coverage. You may benefit from the new plan if you don''t already have a prescription drug plan that is considered "creditable," a term used by Medicare to describe a plan that is as good as or better than the Part D plans. This is important since, if you refuse the Medicare benefits and stay with a non-creditable plan and later decide you want to be in Part D plan, you will have to pay a penalty for enrolling after the May 15, 2006 deadline. If you already have a prescription drug plan, call the company's customer service number to find out if your plan is creditable. You should also receive and keep a letter from your current drug plan stating that your plan is creditable to avoid a penalty.

What plan options do I have to choose from?

You can choose from two Medicare plan options:

• A stand alone prescription drug plan (PDP) that offers only prescription drug benefits. You would still get your medical benefits (including doctor's visits) through Original Medicare.
• A Medicare Advantage plan (such as an HMO or PPO) that covers all of your healthcare costs, including your prescriton drugs.

How much will I have to pay for the drug benefit?

That depends upon which plan you choose. In general, you will pay a monthly premium (about $32), and annual deductible (approximately $250), and a portion of the cost of each prescription (co-pay). Individual plans can structure the costs differently, as long as they provide the same general benefits outlined by Medicare. If your prescription drug costs tend to be high, watch out for the coverage "gap" built into the Medicare legislation. When your total drug costs exceed about $2,250, you will have to pay 100 percent of your prescription costs until your out-of-pocket cost reaches the maximum limit, which is $3,600 in 2006. Then you'll pay just 5 percent of each prescription cost. Some plans offer additional coverage to fill this gap.

Will Medicare Part D cover all of my medications?

Each Medicare drug plan covers a designated number of prescriptions from a list of in-network pharmacies. The plans are required to cover at least two different drugs from each drug class. Before deciding on a plan, ask whether it includes your local pharmacy, whether it offers more than a 30-day supply of medications at one time, and what drugs are in its formulary. If your doctor prescribes a medication that is not on your plan's list, or if you visit an out-of network pharmacy, you will be responsible for the full cost of the prescription. You do have the right, however, to request that your plan cover a drug that your doctor deems medically necessary.

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