Nearly one year after congress passed the Medicare and prescription drug plan, both sides are still debating its supposed benefits, or detriments. Unfortunately, many of the people who will be affected by the Medicare changes still don't know where to turn.

What follows is an initial analysis of what will happen January 1, 2006.

Our conclusion:

Regardless of whatever else you're hearing, the Medicare Part "D" prescription drug plan has many loopholes that are harmful to seniors with low to moderate incomes.

The Analysis:

First, you will pay a monthly insurance premium of $35 per month, or $420 for the year.

Secondly, the first $225 you spend will make up your deductible ­ no help from Medicare Thirdly, the next $2,000 in coats ($226 to $2,225) is 25% your cost, 75% Medicare. Fourthly, and this is referred to as the donut hole, you have to pay 100% again for all dollars spent between $2,225 and $5,100 ­ no Medicare help. Lastly, any dollars spent for prescriptions above $5,100 in one year will be 5% yours, 95% from Medicare ­ this is called Catastrophic Coverage.

Your 2006 Medicare Coverage Costs:

Your Prescription Costs/What It'll Cost You/You Pay/You Save

$225-------------------------$645-------------100%---$0
$1,000-----------------------$839-------------84%----$161
$1,500-----------------------$964-------------64%----$536
$2,000-----------------------$1,089-----------55%----$911
$3,000-----------------------$1,920-----------64%----$1,080
$4,000-----------------------$2,920-----------73%----$1,080
$5,000-----------------------$3,920-----------78%----$1,080

Final Thought:

Beginning January 1, 2006 your Medicare costs, as detailed in the new plan passed by congress and the current administration, may increase significantly.

We believe congress should have done better than this for our seniors.

Remember, it's only after you spend $5,100 in Medicare-cover healthcare costs that the catastrophic support starts. Even then, you'd still be responsible for 5% of your costs.

As it stands, it will take about $800 of prescriptions in a year just to break even! Then, your out-of-pocket expenses go down. However they come right back up once you hit the donut hole, where you pay 100% again.