Medicare Minute

Medicare is an essential health care program for people age 65 and older
and people with disabilities. Recently, President Bush and Congress
worked together to pass a new law to bring people with Medicare more
choices in health care coverage and better health care benefits. This
new law preserves and strengthens the current Medicare program, adds
important new prescription drug and preventive benefits, and provides
extra help to people with low incomes. You will still be able to choose
doctors, hospitals and pharmacies. If you are happy with the Medicare
coverage you have, you can keep it exactly the same. Or, you can choose
to enroll in new options described below.

No matter what you decide, you are still in the Medicare program. Drug
Discount Cards Start in 2004 Medicare-Approved Drug Discount Cards will
be available in 2004 to help you save on prescription drugs. Medicare
will contract with private companies to offer new drug discount cards
until a Medicare prescription drug benefit starts in 2006. A discount
card with Medicare\'s seal of approval can help you save 10 - 25 percent
on prescription drugs. You can enroll beginning as early as May 2004 and
continuing through December 31, 2005. Enrolling is your choice.

Medicare will send you information soon with details about how to
enroll. People in the greatest need will have the greatest help
available to them. If your income in 2003 is no more than \$12,123 for a
single person, or no more than \$16,362 for a married couple, you might
qualify for a \$600 credit on your discount card to help pay for your
prescription drugs. (You can\'t qualify for the \$600 if you already
have drug coverage from Medicaid, TRICARE for Life or an employer group
health plan).

Also new in 2004, Medicare Advantage is the new name for Medicare +
Choice plans. Medicare Advantage rules and payments are improved to give
you more health plan choices and better benefits. Plan choices might
have improved already in your area. To find out more, call
1-800-Medicare (1-800-633-4227).

New and Improved Preventive Benefits Start in 2005

New Preventive Benefits will be covered, including: One-time initial
wellness physical exam within 6 months of the day you first enroll in
Medicare Part B. Screening blood tests for early detection of
cardiovascular (heart) diseases. Diabetes screening tests for people
with Medicare at risk of getting diabetes. These benefits add to the
many preventive services that Medicare already covers, such as cancer
screenings, bone mass measurements and vaccinations.

Prescription Drug Plans Start in 2006

Prescription Drug Benefits will be added to Medicare in 2006. All people
with Medicare will be able to enroll in plans that cover prescription
drugs. Plans may vary, but in general, this is how they will work: You
will choose a prescription drug plan and pay a premium of about \$35 a
month. You will pay the first \$250 (called a \"deductible\"). Medicare
then will pay 75% of costs between \$250 and \$2,250 in drug spending.
You will pay only 25% of these costs. You will pay 100% of the drug
costs above \$2,250 until you reach \$3,600 in out-of-pocket spending.
Medicare will pay about 95% of the costs after you have spent \$3,600.

Some prescription drug plans may have additional options to help you pay
the out-of-pocket costs. Extra help will be available for people with
low incomes and limited assets. Most significantly, people with Medicare
in the greatest need, who have incomes below a certain limit won\'t have
to pay the premiums or deductible for prescription drugs. The income
limits

will be set in 2005. If you qualify, you will only pay a small
co-payment for each prescription you need.

Other people with low incomes and limited assets will get help paying
the premiums and deductible. The amount they pay for each prescription
will be limited.

Advantage plan choices will be expanded to include regional preferred
provider organization plans (PPOs). Regional PPOs will help ensure that
all people with Medicare have multiple choices for Medicare health
coverage, no matter where they live. PPOs can help you save money by
choosing from doctors and providers on a plan\'s \"preferred\" list, but
usually don\'t require you to get a referral. PPOs are among the most
common and popular plans right now for working Americans. All of these
options are voluntary. You can choose to remain in the traditional
Medicare plan you have today.

News for all Americans\--

Starting immediately, Americans will be able to set aside money each
year, tax free, in Health Savings Accounts. The savings accounts can be
used to pay for medical expenses, and money not spent would stay in the
account and gain interest tax-free, just like an Individual Retirement
Account (IRA). Your health insurance deductible must be at least \$1,000
for a single person

and at least \$2,000 for family coverage.

Questions about Medicare?

For the latest information about Medicare,

visit www.medicare.gov http://www.medicare.gov

or call 1-800-MEDICARE (1-800-633-4227).

TTY users should call 1-877-486-2048.

To get a copy of this information in Spanish, call 1-800-MEDICARE

(1-800-633-4227). TTY users should call 1-877-486-2048.

Para una copia en espanol, llame gratis al 1-800-MEDICARE

(1-800-633-4227). Los usuarios de TTY deben llamar al 1-877-486-2048.