Medicare helps employers and unions continue to offer high quality prescription drug coverage. Before you make a decision about whether to join a Medicare drug plan, it’s important for you to understand how your employer or union drug coverage works with Medicare. Your employer or union drug coverage may change if you join a Medicare drug plan. You should get information from your employer or union (or the plan that administers your drug coverage) annually about how your drug coverage compares to Medicare prescription drug coverage (whether it is creditable drug coverage). Read carefully and save all materials from your employer or union. They will help you understand your options and make your decision much easier.
Here are some important questions to answer before making a decision
- Is your employer or union drug coverage creditable (on average, does it expect to pay at least as much as standard Medicare prescription drug coverage)? If not, in most cases, you will have to pay a late enrollment penalty if you don’t join a Medicare drug plan when you are first eligible.
- Will you or your spouse or dependents lose all of your employer or union coverage if you join a Medicare drug plan?
- How do your out-of-pocket drug costs with your employer or union drug coverage compare to your out-of-pocket drug costs with a Medicare drug plan?
- If you qualify for extra help with your Medicare drug plan costs, how does this change how your costs compare?
