Many seniors asked questions concerning details about the updated plan. In addition to the monthly premium, beneficiaries will have to pay an annual deductible of $250 and a $3 co-pay on generic drugs, and a $5 co-pay on brand-name drugs. Medical expenses will be covered by Medicare for 75 percent of drug costs up to $2,250 — the amount the average senior spends on drug coverage annually.

However, beneficiaries will face a coverage gap, dubbed "the doughnut hole," between $2,250 and $5,100 of expenses, where they will have to pay 100 percent of costs. Over that, Medicare will cover 95 percent of prescription costs. These expenses apply only to those not living at the federal poverty level.

"If you want a plan that will cover more, you can buy a plan that will do that," Leavitt said in response to a question concerning the doughnut hole.

Enrollment begins Nov. 15. On Jan. 1, those who enrolled in a plan by Dec. 31 will start prescription drug coverage. Seniors have until May 15 to enroll in a plan for the year, when the initial enrollment closes. The next open enrollment period begins Nov. 15, 2006.

A few seniors raised questions about buying cheaper drugs from a pharmacy outside the United States. Leavitt said many people think they are buying safe pharmaceuticals from a pharmacy in Canada, for example, but in reality, many companies that offer cheaper drugs without prescriptions are not based in North America and are not selling the real drug.

"This is a significant issue," he said. "There are billions of dollars in counterfeit drugs."

One company Leavitt said he had the Food and Drug Administration investigate claimed to be in Canada but had an Internet service provider in China, managed the Web site from Belize, cashed checks in the Virgin Islands and shipped drugs from Dallas.

"Many of you worry that prescription drugs could wipe your savings out," he said. "After January, no one should have to worry about that anymore."

For more information on the new benefits, visit www.medicare.gov or call 1-800-MEDICARE. Information is also being sent directly to the homes of those who qualify. For those who fit the poverty bracket, a low-income subsidy application already has been sent. In October, Medicare beneficiaries will be sent a new Medicare handbook.

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E-mail: astowell@desnews.com