QUESTION: My mother is 83 and on Medicare but Medicaid pays for her prescriptions. Will Medicaid continue to cover these costs after the new Medicare drug benefit begins?ANSWER: Medicaid will stop covering prescription drugs for people who are on Medicare as of Dec. 31, 2005. When the new Medicare benefit goes into effect, individuals with both Medicare and Medicaid will continue to be eligible for other Medicaid benefits but, beginning Jan. 1, 2006, will get prescriptions covered under new Medicare prescription drug plans instead.Even before January, people on Medicare who now get their prescriptions paid by Medicaid will be enrolled by the government into one of the new Medicare prescription drug plans. The government expects to assign these individuals to a Medicare plan before January to prevent a gap in their drug coverage.Before the end of this year, your mother should receive a letter from the government that tells her which Medicare drug plan will be covering her prescription drug costs in 2006.If she does not receive this letter, she should call 800-MEDICARE (or you can call for her) to be sure she is not without drug coverage next year.Those who shift from Medicaid to Medicare plans for their drug coverage will not be required to pay premiums or a deductible. They will, however, be required to pay co-payments of up to $5 per prescription. If your mom happens to be in a nursing home, she will not be required to pay any co-payment for her prescriptions.One more tip: If your mom receives a letter explaining that she is enrolled in a Medicare plan, check to be sure her new Medicare drug plan covers the medications she takes. If it does not, she might want to consider switching to another plan offered in her area that is better suited to her medication needs — with one important caveat. Before switching plans, she should check to be sure that the plan that she prefers will not require her to pay an additional premium. This is clearly an important consideration.For additional help, you may want to call 800-MEDICARE and ask for your state Medicaid office or state Health Insurance Assistance Program.

QUESTION: This summer I received a letter from Social Security that says I might qualify for extra help to pay for the annual premiums, deductible, and co-payments related to the new Medicare prescription drug plan. What does this mean?ANSWER: The Social Security Administration is mailing letters to people on Medicare who may qualify for additional financial help when the Medicare drug benefit starts in January. This extra help — targeted to people on Medicare with limited incomes and modest resources — could provide significant savings to those who sign up for a new Medicare prescription drug plan.Beginning in 2006, all people on Medicare will be able to receive coverage under new prescription drug plans, but most will have to pay a new monthly premium, a deductible, and a co-payment for each prescription.If you expect to sign up for a Medicare drug plan for 2006 and your annual income is less than about $14,400 (or $19,250 per couple) and you have less than $11,500 in assets ($23,000 per couple), not including your home or car, you can qualify for extra help. You may not have to pay the full premium or deductible and you will only pay a couple of dollars for each covered prescription. You can apply for this additional assistance through Social Security or through your state Medicaid (Medical Assistance) program.One last reminder: Don't forget to enroll in a Medicare prescription drug plan — in addition to applying for extra help provided to those with modest means. It would be a good idea to compare Medicare drug plans in your area and consider which plan is best for you. You can find out about the drug plans in your area starting in mid-October by visiting www.Medicare.gov or calling 800-MEDICARE.

QUESTION: I hear that Medicare will begin to pay for prescription drugs next year, and that I will have to pay a monthly premium to get this coverage. I am healthy and take only one prescription. Do I have to sign up for a Medicare drug plan?ANSWER: It is smart to think about enrolling in a Medicare prescription drug plan before the new drug benefit goes into effect. Medicare does not pay for prescription drugs now, but starting in January, Medicare will help cover medication costs for people who enroll in one of the new prescription drug plans.Between Nov. 15 and May 15, you and others on Medicare will have the option of enrolling in a Medicare plan that will help pay for prescriptions in 2006.The first question to consider is whether to sign up for a Medicare prescription drug plan. While it may be tempting to wait a year or two before signing up, there are good reasons to enroll in a Medicare drug plan for 2006 — even if you are in good health. The Medicare drug benefit is expected to reduce drug costs for most enrollees and protect against catastrophic drug expenses. To get this coverage, you will have to pay a monthly premium. Premiums are expected to be about $32 per month, but you may pay more or less depending upon which plan you choose. For many people, the coverage could be a good deal, since Medicare is subsidizing the cost. There is additional financial help for Medicare beneficiaries with low incomes.Another reason to consider enrolling for 2006 is to avoid a financial penalty for late enrollment. Unless you have drug coverage that is at least as good as what will be offered by Medicare drug plans, such as retiree health benefits from an employer, you could be required to pay a premium penalty if you change your mind and sign up for a Medicare drug plan in a future year. The premium penalty would increase the cost of your Medicare drug coverage permanently.If you sign up, there will be other decisions coming your way, not the least of which is choosing the Medicare drug plan that's best for you.