The Foreign Service Journal, December 2005

8 AFSA NEWS • DECEMBER 2005 M edicare prescription drug cover- age is a voluntary insurance pro- gram that will be available to everyone with Medicare coverage in January2006. Open seasonbeganNov. 15. Themonthly premiumswill be $32.20. After a $250 deductible,Medicarewill pay 75 percent of the cost of each prescription and the beneficiarywill pay 25 percent, up to $2,250 in total costs. (At this point the beneficiarywill have paid anout-of-pock- et total of $750.) Once a beneficiary has $2,250 in drug costs (a combination of costs paid by the beneficiaryandMedicare), he/shehits acov- erage gapor “doughnut hole.” At thispoint Medicarewill stopcoveringdrug costs until thebeneficiary spends anadditional $2,850. This amount may not be paid by another insurance plan. Once the beneficiary has paid this $2,850, he/she is eligible for cat- astrophic coverage. Because FEHBPplans paywell for pre- scription drugs, adding Medicare D pre- scription drug coverage would not make sense for most retirees with these plans. There are exceptions, particularly people with low incomes or those in a healthplan with a weak drug benefit. Since any par- ticipant inanyFEHBPplanhas “creditable” drug coverage (coverage deemed as good as or better thanMedicare D), he/she can enroll inPartD in later yearswithout pay- ing a penalty. For more information, call Medicare toll-free at 1 (800) 633-4227 or visit www.medicare.gov. When considering or comparing Medicare D plan(s): • Take an inventoryof your prescription needs. • Determine if your present planmeets those needs. • Find out if a plan lists your prescrip- tions on its “formulary,” the list of drugs covered by its policy. •Calculate to see if theplanwill save you money, taking into consideration your income level, prescription needs and your present drug coverage. • Find out if you can use your regular pharmacy under the plan. Consumer and Medicare groups have expressed concern that consumers will be overwhelmedby the plan choices, and that the open season will be a high-pressured marketingblitz, rather thananeffort togen- uinely educate seniors about Medicare D options. In addition, these groups caution that unscrupulous people might acquire bank account andSocial Security informa- tion, or fees, under the guise of registering people for the new drug program. Here are some tips to help you protect yourself from fraud: • Register for the national Do-Not-Call registrybycalling toll-free, 1(888)382-1222. Companies offeringMedicareDplans can- not call you if your home telephone and cell phones are on this registry. •Donot giveout anypersonal informa- tion, particularly your bank account or Social Securitynumber, over the telephone. • Demand writtenmaterials from tele- phone solicitors before making any deci- sions. • Remember, you can hang up on tele- marketers. •Donot allowanyone youdonot know and have not invited into your home. • Do not allowyourself to be pressured into a quick decision. •CheckoutMedicareDcompanieswith Medicare by calling (toll-free) 1 (800) 633- 4227 or visiting www.medicare.gov. • Do not pay any money to apply for a plan. Medicare D plans never require an application fee. • If you become apprehensive about a caller or telephone solicitor, call your local police. o PRESCRIPTION DRUG COVERAGE Medicare D: What You Should Know BY BONNIE BROWN, AFSA RETIREE COORDINATOR More on PIT Buyback T he PIT buyback is available to employeeswhowill be eligible for an annuity under the Federal Employees Retirement System and the Foreign Service Pension System, but who were unable to participate in the retirement system from Jan. 1, 1989, to May 23, 1998. They are now able to purchase credit toward retirement by making a deposit equal to the deductions that wouldhavebeenmade fromtheir earn- ings if they hadbeen eligible, plus inter- est. Employees under the Foreign ServiceRetirement andDisabilitySystem and theCivil ServiceRetirement System have always beenable topurchase cred- it for their PIT service if it was followed by FSRDS or CSRS service. New Retiree Benefit: Consumer Checkbook Guide A FSA is pleased to offer a new retiree benefit — online access to the 2006 Consumer Checkbook Guide to Health Plans . The Guide provides 2006 premiums and bene- fits, aswell as informationon comparative planquality and service tohelp retirees choose the best plan for their needs and pocketbooks. Retirees can gain access to the Guide at AFSA’s Retiree Web page at www.afsa.org/ rtvppage.cfm, or go to www.afsa.org an d click on the retiree tab at the top of the page. Retirees who do not use the Internet but need assistance with the FEHB open season may write or call our retiree coordinators toll-free at 1 (800) 704-2372: Bonnie Brown (ext. 509) and Norma Reyes (ext. 514).