You are single and have an income less than $15,315 in 2007.*
	You are married and living with your spouse and have an income less than $20,535 in 2007.*
	Your assets are below certain limits.
	You may also qualify for extra help in paying for your Medicare hospital and doctor costs.
	* These amounts will be adjusted for 2008.

	If you have limited income and resources and think you may still qualify for extra help with your prescription drug costs, you will need to apply and qualify through Social Security or your State Medical Assistance (Medicaid) office.
	You can apply for extra help by filling out and mailing the application that is included with the SSA notice or by contacting SSA.
	You should apply as soon as possible to make sure that, if you qualify, you will get extra help starting January 1, 2008.

	Contact the Social Security Administration (SSA) at 1(800) 772-1213, or visit its web site at www.socialsecurity.gov.
	Contact your State Health Insurance Assistance Program (SHIP).You can talk with a SHIP counselor who will help you apply for extra help.

After you apply, you will receive a letter in the mail letting you know whether or not you
qualify and what to do next. SAVE THIS LETTER.


2. Use generic drugs instead of brand-name drugs.

One of the easiest ways to lower your prescription drug costs is to switch to generic drugs when possible.

	Generic drugs are prescription drugs that have the same active ingredient formula as a brand-name drug.
	Generic drugs usually cost less than brand-name drugs.
	Generic drugs are rated by the Food and Drug Administration to be as safe and effective as brand-name drugs.

Generic drugs help you save in two ways:

	The copay or coinsurance for generic drugs is often lower than for brand-name drugs.
	Also, the total cost of the drug is lower so it takes longer to reach the coverage gap.

Check with your doctor to see if there are any generic drugs that can be substituted for your brand-name drugs that will cost less and may work just as well for you.


3. Use alternative brands.

Some high-cost brand-name drugs do not have generic versions. In this case, there still may be ways to lower your prescription drug costs.

	Most plans include several choices within the same class of drugs.
	Some of those brand choices may be preferred brand-name drugs (lower cost), and some may be non-preferred brand-name drugs (higher cost).
	Check with your doctor. Find out if the drug you need is on the preferred brand-name drug list. If so, ask if you can take the preferred brand-name drug instead of the drug you are currently taking. This can save you money.

4. Use a pharmacy in your plan's pharmacy network.

	All Medicare drug plans have a pharmacy network. In order for your plan to pay for your prescriptions, you generally must go to a pharmacy in the plan's network.
	Find out if your pharmacy is included on the plan's list of network pharmacies.
	Always use your Medicare drug plan card when you have prescriptions filled.
	Only when you use network pharmacies can your plan accurately keep track of what you spend on your prescription drugs. This is especially important if you have very high drug costs.

5. Get extended supplies of your prescriptions when appropriate.

If you have a chronic condition that requires you to use the same drug(s) over a long period of time, you may be able to fill your prescription less often and at a lower cost by getting an extended supply (e.g., a 90-day supply) through your local pharmacy or by using a mail-order program. Many Medicare drug plans offer the option of mail-order prescriptions. In addition, your local pharmacy may be able to provide you an extended supply of your prescription(s) for the same price as mail order.


6. Talk with your pharmacist to learn more about the drugs you are taking.

For example, ask about:

	Whether there are possible interactions among the drugs you are taking
	What the side effects of your prescriptions might be
	Whether there are less expensive alternatives to drugs you are taking

	The Coverage Gap and Catastrophic Coverage The coverage gap is the period between your initial coverage limit and the catastrophic coverage threshold. In many plans, you will be responsible for paying 100% of your drug costs in the coverage gap. In 2008, you are in the coverage gap when the total amount spent on your drugs—both what you have paid and what your Medicare plan has paid on your behalf—goes above $2,510. The coverage gap continues until the total amount you pay out of pocket in 2008—excluding what your Medicare plan has paid on your behalf—reaches $4,050. When your out of pocket costs for prescriptions in 2008 reach the catastrophic coverage threshold of $4,050, Medicare and your plan together will pay for about 95% of your drug costs for the remainder of the year. Here are a few strategies that could save you money: If you think your drug costs might put you in the coverage gap, look for a plan that provides some coverage in the coverage gap. Ask your doctor about substituting generic drugs or preferred brand-name drugs for more expensive non-preferred brand-name drugs. This could slow your movement toward the coverage gap and save you money if you do enter it. Always use your drug plan card when you get your prescriptions filled. With your card, you will pay the lower (negotiated) plan price for your drugs rather than full price, even when you are in the coverage gap. In addition, if you have very high drug costs and your out of pocket costs are likely to go above the $4,050 catastrophic coverage threshold in 2008, you must use your plan card to have your drug costs count toward Medicare's catastrophic coverage. Explore Patient Assistance Programs, and national- and community-based charitable programs. Contact your local State Health Insurance Assistance Program, or call 1(800) MEDICARE (1(800) 663-4227) to get more information.