Will Medigap policies with drug benefits be available after January 1, 2006?
People who turn 65 after January 1, 2006 will not be able to purchase traditional Medigap policies that include drug benefits. For people enrolled in a Medigap drug benefit program before that date, policies can be renewed, but the plan must be in effect before this date. Q: Will it be possible to purchase a supplemental policy to help cover gaps in coverage under Medicare Part D? A: You may be able to. Private companies that offer a Medicare drug plan (the Part D benefit) can, if they choose, sell policies to pay some of the out-of-pocket costs. The supplemental policy must be sponsored by the same plan that provides your Medicare drug benefit. Q: What does the legislation do about public retiree health benefits? A: Eighty-eight billion ($88 billion) is allocated to provide Federal subsidies to employers (both public and private), to encourage companies to continue offering retiree drug coverage that meets or exceeds the level provided by Medicare Part D. You should carefully examine