Getting a Medicare Part D supplemental plan can be like going through a jungle of plans, and you can easily make a mistake in choosing a plan (and you’re stuck with that mistake for a year until the next election period comes along).

So, it really pays to talk to an insurance consultant before buying any plan. There are over 1,400 plans with prescription drug benefits that offer more or less of the same thing, but only differ in their formulary or list of covered drugs.

When choosing a Part D plan, there are some points to consider. These include:

• Strength and stability of the company providing the Part D plan, the cost of the plan, and the extent of coverage. Many recipients of Medicare are clueless on the financial health of a Medicare Part D company. Thankfully, a system  has been put in place that enables Medicare recipients to share their experiences in different Part D plans.

• The plan’s formulary or list of covered drugs – generic or brand name. Medicare Part D providers are allowed to come up with their own list of covered drugs. One plan’s list of covered drugs may be totally different from that of another plan. Some sectors in the industry strongly believe this differing formularies is a flaw in the legislation that created the Part D program which should be corrected.

• Mail order. Using a mail ordering system can save you a lot of money in most cases. Check with your Part D provider if it has this kind of money-saving option.


• Enrolment penalty. There is always a penalty for not deciding early on if you need a Part D plan or not. If you enroll past the election period, then be prepared to pay a late enrollment penalty, which goes into your premium. Late charges are calculated by the Center for Medicare and Medicaid Services and sent to your insurer. You will be informed in writing as to the exact amount of the penalty.

• Preferred payment method. Some of the payment option available to Medicare recipients are personal checks, credit card, Social Security deductions and bank draft. Choose the payment method that will not compromise your finances. Most insurance agents would recommend paying for your premium via bank draft so you won’t accidentally lapse on your policy by accident.

The annual enrolment period for Part D plans begins on November 15 and ends on December 31, 2008. The campaign period for the new Part D plans October 1, 2008 and that’s when you can search through some product literature. Coverage for newly-elected Part D plans begins on January 1, 2009.

Medicare beneficiaries with Part D coverage are not required to elect a new plan. If you’re quite happy with your Part D coverage, you can just renew your coverage and follow through on the next year. Check with your Part D provider though if there are any changes to your plans for 2009. It does pay to compare.