Tips on choosing right plans

People eligible for the Medicare prescription drug benefit that takes effect Jan. 1 can choose from a variety of plans that include the new coverage by itself or as part of a broader health insurance package. Here are some tips on narrowing the options:

IF you have no prescription drug coverage now,

THEN you should purchase a stand-alone prescription drug plan, or a broader Medicare Advantage Plan that includes drug coverage along with coverage for traditional Medicare services such as visits to doctors and hospitalization.

IF you now have drug coverage through a health plan offered by your former employer or union,

THEN you may not need to do anything. Your former employer or union will let you know if your current coverage is at least as good as the new Medicare benefit. Signing up for a Medicare Part D drug plan could jeopardize your existing coverage.

IF you now receive benefits from both Medicare and Medicaid,

THEN your drug coverage will be moved from Medicaid to Medicare. You will automatically be assigned to a Medicare drug plan, but with the option of switching if you find another plan. If you do not sign up for a drug plan, you will automatically be assigned to one.

IF you have a so-called Medigap health plan, which provides coverage for benefits not provided by traditional Medicare (including prescription drug coverage),

THEN you should study the cost of the Medicare prescription drug plans and decide if one of them is better than the drug coverage provided under your existing Medigap plan. If so, you can cancel the drug coverage in your existing Medigap plan.

IF you now receive health coverage through a Medicare Advantage Plan,

THEN your current health plan will offer you a new option that incorporates prescription drug benefits with traditional Medicare benefits.

IF you now receive drug benefits through the Massachusetts Prescription Advantage Plan, and are eligible for Medicare,

THEN you will automatically be assigned to a randomly selected Medicare drug plan. Low-income beneficiaries will be required to apply for Medicare subsidies.

JEFFREY KRASNER