You have to check your prescription drug insurance coverage once you retire. If you are covered by a private insurance plan and are under age 65, you may have to take certain steps.
Some employers or professional groups continue to offer a private insurance plan to their employees or members who are retiring, while others do not. If you are insured under a private plan, you will have to check your situation.
If so, you must remain insured under that private plan until you turn 65.
Check whether you qualify for another private plan, for instance, through:
If so, you must join that plan.
You must register with the Public Prescription Drug Insurance Plan.
Are you already covered by the Public Prescription Drug Insurance Plan? If so, you will remain covered by this plan when you retire. You will have nothing to do.
If you change insurers in the course of the year, you must avoid overpaying your annual maximum contribution for the purchase of covered prescription drugs.
Your former insurer must give you the Statement of Contributions, which includes:
Certain insurers will provide this document automatically, while others will do so only on request. You have 6 months following the date the change was made to request the statement of contributions from your former insurer. You must then provide this document to your new insurer, which will be able to take it into account in making sure your maximum contribution is not exceeded. To facilitate processing of your application, send the statement of contributions rather than any other document.
To find out more about the annual maximum amount payable and the contribution itself, refer to the Rates in effect and Amount to pay for prescription drugs webpages.
