Have you heard about the prescription drug benefit for senior citizens that is launching next year? It’s going to be provided by private companies to Medicare-eligible seniors, and they’ll have up to 20 choices for programs depending on where they live. The plans will have a monthly premium and it’s important to get in on the early side or there are financial penalties for signing up later. Enrollment starts Nov. 15 and the program goes into effect Jan. 1, 2006. It can get quite confusing, so it’s important to go over the terms with your parents. Seniors will pay a monthly premium that will vary from company to company. For every prescription a senior buys, the first $250 comes out of pocket. After that, Medicare covers 75 percent of the next $2,000 in drug purchases. The program pretty much stops there. If you go beyond $3,000 in drug purchases, it comes out of the senior’s pocket. And, after $5,000, the government gets involved again. So, you and your parents need to read up on this. The one thing you don’t want to do is to make no decision at all. Now, there is one group of people that should not participate in a Medicare benefit plan. The small number of people who are offered a good plan as a retiree should not get involved. It’s a potential break from the exorbitant prescription drug costs out there, but you need to do your homework. Click here for more information.