Kevin McCormally: I am Kevin McCormally of Kiplinger's, and I am here with Mary Beth Franklin, senior editor of Kiplinger's Personal Finance magazine. Today we want to talk about Medicare D, the new prescription drug program. Mary Beth, it seems like a rocky start for this program, lot of people having a lot of trouble. What should people be doing right now if they have a plan they don't like?
Mary Beth Franklin: Well, you actually get one do over before the May 15th deadline. If you don't like the plan you've chosen, look around, and find one that fits your needs better.
Kevin McCormally: What's this May 15th deadline, what happens if you miss that deadline?
Mary Beth Franklin: If you don't sign out by May 15th, you will find yourself paying a penalty for a late sign for the rest of your life in the Medicare program. So if you need drug coverage, sign up now. Even if it's for basic policy, you'll get a chance to change at the end of each year if you don't like it.
Kevin McCormally: Okay. Let's say you blew at the first time around, and you, or maybe your parents got a policy they find just doesn't serve their needs. How do you do a better job now before that May 15th deadline?
Mary Beth Franklin: Take advantage of the resources out there. Medicare has a very good website at medicare.gov, that can help you whittle down your choices. You can also ask your local pharmacist. They'll be familiar with the plans in your area, and can help you pick.
Kevin McCormally: Okay, final question, what happens if you don't have very many drug needs now, do you need a plan, do you need to sign up, how do you protect yourself against what you might need later?
Mary Beth Franklin: Assuming you're not already covered by say a retiree health benefit plan or something else, you need to sign up for Medicare D now, so that you are in the system, you're not paying a late penalty, and then as your needs change down the road, you can always buy a more robust plan later.
Kevin McCormally: So I can buy a cheap policy now, and save some money, and actually add on later when my needs are greater?
Mary Beth Franklin: That's correct.
Kevin McCormally: Thank you very much.
Transcription by:
Scribe4you Transcription Services