an HMO or PPO. This coverage is called Medicare Advantage and is described on page 16 of this booklet. Most people don’t pay a premium for Part A, since they already paid for it through payroll taxes while they were working. There is a monthly premium for Medicare Part B ($93.50 per month in 2007, but people with incomes over $80,000 pay more). Usually, you will pay a premium if you decide to enroll in Medicare’s prescription drug plan. If you don’t enroll as soon as you are eligible, your premium will be higher if you decide to enroll at a later time. Also, once you are past your first eligibility, you will have to wait for the annual enrollment period (generally November 15-December 31 of each year) in order to enroll in Medicare’s prescription drug coverage. Medicare Prescription Drug Benefits In January 2006, prescription drug coverage (Part D) became available to Medicare beneficiaries for the first time. Through this new benefit, Medicare Do you have now pays for a portion of your prescription limited income and drug costs. Both brand-name and generic resources? prescription drugs are covered at participating If so, you may be eligible pharmacies across the country. Everyone with for extra help with your Medicare is eligible to enroll in this coverage, prescription drug coverage. regardless of income and resources, health status, or current prescription expenses. If you choose to have this coverage, you will be able to get your drugs in one of two ways. You can buy an individual drug plan, or you can sign up with a Medicare Advantage plan, like an HMO or PPO. Either way, you will pay a monthly premium, which varies by plan, coinsurance or copays for your drugs, and in some cases, a yearly deductible (no more than $265 in 2007). There are many plans participating in the Medicare prescription drug program. This broad competition among plans should have a 15