Medicare Part D can be right plan for retirees

The May 15 deadline to sign up for Medicare Part D is approaching. Miss it, and you could get stuck with a penalty — 1 percent of the average national premium for every month you delay — and you'll go without coverage until next year.

Bob and Karin Borden, both 66, of Andover, Mass., planned their enrollment strategy carefully. Karin has rheumatoid arthritis and takes drugs that would cost more than $20,000 a year without insurance. The Bordens visited the Medicare Web site, www.medicare.gov, and typed Karin's drugs and dosages into the site's plan finder. There they discovered that Humana's standard plan — with bare-bones coverage and the lowest premiums ($7.32 per month in Massachusetts) — would net them the lowest out-of-pocket expenses.

After adding in her supplemental coverage under Massachusetts' state-sponsored Prescription Advantage plan, Karin expects her premiums and copays to total $3,070 this year.

Bob has much lower costs. He paid $560 for his medications last year using a Medicare-approved drug discount card. The Humana standard plan will save him about $100 per year.

The Bordens signed up with Humana online and had their membership cards before their coverage took effect Jan. 1. As a hedge, they ordered three-month supplies of their medications in December under their old plans, although Karin had no trouble filling a new prescription in February.

If you have prescription drug coverage through a former employer or another source that is considered better than Medicare's plan ("creditable coverage"), keep it. If you leave the plan, you could lose that coverage forever. And while you have creditable coverage, you won't be penalized for signing up later.

If you have drug coverage through Medigap plans H, I or J, Medicare's Part D plan is a better deal. Sign up for a stand-alone Part D plan and switch to another Medigap plan, or sign up for a Medicare Advantage plan: a senior HMO that covers prescription drugs and medical expenses.

To shop, list your medications and their dosages and run the numbers at Medicare.gov (you can also call 800-633-4227 or get help from your local state health insurance assistance program). There's helpful Part D information at the Medicare Rights Center (www.medicarerights.org) and the Center for Medicare Advocacy (www.medicareadvocacy.org).

Before making a final decision, call the insurer to verify that your medications are fully covered. And don't worry about finding the perfect plan now. If you're not satisfied, you can switch next year.