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The Medicare Rx Clearinghouse

Information to Help You with the New Medicare Part D

You've come to the right place! As of January 1, 2006, Medicare offers prescription drug coverage to all Medicare beneficiaries under a new federal program called "Medicare Part D". All beneficiaries, including seniors and disabled persons, are eligible to enroll in this voluntary drug benefit, which will only be provided by private plans.

AFSCME members with retiree drug coverage paid by their former employer will have a very different choice to make on Part D than retirees without such coverage. In most cases, retirees with good employer coverage will be better off staying in their existing drug plan, unlike retirees who pay out of pocket or use plans like Medigap. Beneficiaries who do not have an existing drug plan that is considered equivalent or better to that offered by Medicare must enroll in a Part D plan by May 15, 2006 to avoid penalty.

In addition to the choices individuals must make, employers that provide retiree drug coverage also have decisions to consider under the new law. The Medicare Part D law provides employers with several options to help keep and pay for their existing drug coverage. This year, most AFSCME employers will maintain their coverage, and simply apply for a new federal subsidy to help pay for their retiree drug costs. However, for the coming years it is important to watch that employers do not change their plans to reduce or drop prescription coverage.

Below is information to help union families and staff with the transition to Medicare Part D.

Union Fact Sheets to Help with Plan Selection

Medicare Part D Drug Coverage: What Do AFSCME Retirees Need to Know? — A guide for leaders and members
The New Medicare Prescription Drug Benefit — AFSCME fact sheet with questions union retirees should ask before considering Part D insurance
An Overview of Medicare Part D Prescription Drug Benefits for Seniors — AFSCME primer on Medicare Rx law for union members and staff
What's In the 2003 Medicare Modernization Act? — Fact sheet explaining issues and problems with the 2003 federal law for advocates
AFL-CIO Information on Part D — A compilation of information for union members from the AFL-CIO and its member unions

People You Can Call to Talk About Medicare Rx

Your retiree health plan, or the employer's Human Resources office
Retiree chapters and union staff
1-800-Medicare federal hotline
State Health Insurance Assistance Programs (SHIPs) — Free local Medicare plan counseling for all beneficiaries in-state, or call national 1-800-Medicare line
Extra financial help for people who use Medicare Part D — Click here for online application or call Social Security at 800-772-1213

Government and Foundation Resources on Medicare Rx

Consumer guides and fact sheets

National Council on Aging: Fact Sheet for People Using Employer Coverage
Medicare & You 2007 — official Medicare publication for all beneficiaries
Medicare Basics: A Guide for Families and Friends of People with Medicare
Medicare official website
Families USA: Medicare Drug Coverage Center for consumers
Prescription Drug Costs and Medicare — Kaiser Family Foundation

Internet programs that individuals can use to help choose a plan

BenefitsCheckUpRx — a Web-based program sponsored by the US Department of Health and Human Services to help you decide if you should enroll in Part D
Medicare Prescription Drug Finder — Web-based program to help Medicare beneficiaries locate and compare only Medicare Rx plans. Note: The Finder is limited. It does not include information for people using employer drug plan benefits, and is not capable of comparing employer plans with Medicare Rx plans. It will be primarily helpful for retirees without employer-provided drug coverage.
Medicare Drug Benefit Calculator — Kaiser Family Foundation

Technical Resources for Union Staff and Bargainers

An Overview of Medicare Part D Prescription Drug Benefits for Seniors — AFSCME primer for staff on Medicare Rx law and implementation

Kaiser Family Foundation Medicare Page

Employer Survey on Future Plans for Continuing Retiree Health Benefits