Beginning January 1, 2006, Medicare will be providing prescription drug coverage (prescription insurance) for persons with Medicare.  This new benefit also comes as a result of the Medicare Modernization Act (MMA) of 2003.  Persons with both Medicare Part A and/or B are eligible to enroll. 

Medicare is working with private insurance companies to offer Medicare Prescription Drug Plans (PDPs).  The Initial Enrollment Period begins on November 15, 2005 and ends May 15, 2006.  Although enrollment is voluntary, after May 15, 2006, a 1% monthly penalty will be assessed for each month an individual was eligible to enroll and did not enroll.  The penalty will be added to the monthly premium and will remain as long as a person with Medicare keeps the prescription drug coverage.  Also, a person can enroll, change, or drop a plan between November 15 and December 31 of each year.  This period is called the Annual Coordinated Election Period.

In the Virgin Islands, extra help with paying for these plans are available to persons with both Medicare and Medicaid ("Dual Eligibles").  The Department of Human Services, Division of Senior Citizens Affairs Pharmaceutical Assistance Program (PAP) is also providing assistance with paying for the plans to Medicare beneficiaries in their program.

People with VA benefits, TRICARE for Life, and Federal Employees Health Benefits (FEHB) are encouraged to keep their prescription coverage through these programs/insurances, since they are considered "creditable" (on average, at least as good as the Medicare Prescription Drug Coverage).  However, persons with employer/union insurance and Medigap polices should contact their employer/union's benefits administrator or insurance company to find out what decisions they will need to make regarding the Medicare Prescription Drug Coverage.   Employers/unions were required to send a letter between September 15, 2005 and November 14, 2005 to their subscribers explaining whether their prescription drug was creditable.

Please click on one of the links below to view the publication:
An Important Message on the Medicare Prescription Drug Plans Coming to the U.S. Virgin Islands in 2006.
 

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