By Lori EhdeThe new Medicare Part D prescription drug coverage begins Jan. 1, and local insurance agents are trying to get essential information to their clients."I started looking at my client list and said, ‘There’s no way I’m going to reach all these people individually,’" said Shirley Top, an agent with Kozlowski Insurance.So Top hosted an open house in Luverne last week to inform seniors about the drug plan. "The key thing is that coverage will be available to everyone with Medicare," Top said. More than 100 attended the open house, but Top said so many more need to know the details."They need to enroll," she said. "People think it’s automatically going to come to them like their Medicare Part A and Part B coverage — wrong. They need to enroll."Initial enrollment is from Nov. 15, 2005, to May 15, 2006, at the lowest cost to beneficiaries. Enrollment in Medicare Part D plan is voluntary, but those who wait until after the enrollment period will pay a lifetime premium penalty equal to 1 percent of the base premium for each month they delay enrollment. "This can significantly increase the premiums, which will start at $37.23 per month," Top said. The penalty would be an additional 6 percent in January of 2007 and 18 percent in January 2008.Medicare will provide premium and cost-sharing subsidies to assist low-income beneficiaries. Medicare beneficiaries with Medicaid drug coverage, and QMB’s and SLMB’s are automatically deemed eligible for these subsidies. Other low-income beneficiaries will have to meet both an income and asset test to receive additional assistance. "Social Security Administration is sending application forms to people they think may qualify," Top said. "If you think you might qualify and you have not received an application you can call Social Security at 1-800-772-1213."Applications are also available online at www.socialsecurity.gov.Qualifications for the low-income assistance are an annual income of less than $14,335 (or $19,245 if married) and assets valued under $11,500 ($23,000 if married). Assets do not include your home or car. A married couple living together makes a joint application when applying for low-income Part D benefits. If husband or wife receives an application the couple should complete the application jointly. "If a second application is received later, it can be discarded," Top said.She said people may not apply for assistance with their premiums because they don’t think they’re eligible, but she encourages everyone to look into it."Help is here for the people that need it the most," said Top.She warned people not to confuse the premium assistance with the enrollment application. "The low-income application for assistance does not enroll a Medicare beneficiary in the Part D Prescription program," Top said.Health insurance companies such as Blue Cross Blue Shield of Minnesota, will contact the federal government to provide Medicare Part D coverage. "Enrollment for Medicare Part D will be through insurance companies," Top said. "Because the government helps pay for these plans, they may offer a greater value than the current drug program you already have."Top is offering another open house at 10 a.m. Tuesday, Aug. 9, in the Adrian Elementary School Commons in Adrian. Pre-registration is necessary for materials, but there is no charge for the meeting. Call 283-3704 or 1-877-631-3704 to reserve a spot. Top is one of many insurance agents that are stressing the need for their clients and others to look into the Medicare Part D Prescription Drug Plan. "You can help a relative, a neighbor or a friend by telling them about it," she added. "You have nothing to lose by applying."
