Words to Know

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Co-insurance
Splitting costs on a percentage basis. After you reach the set deductible amount in your Medicare Prescription Drug Plan, you will share costs with the plan and pay a predetermined co-insurance percentage.

Co-payment
A cost sharing where you pay a preset flat amount for a service, and the plan pays the rest. 

Creditable Coverage
Coverage that’s, on average, at least as good as the coverage offered in a Medicare Prescription Drug Plan.

Formulary
A list of drugs that are covered by a Medicare Prescription Drug Plan.

Late Enrollment Fee
(see penalty)

Open Enrollment
November 15, 2006 to May 15, 2007.  During this period, you may enroll in a Medicare Prescription Drug Plan without paying a penalty.

Premium
The monthly fee required to obtain coverage in an insurance plan.

Penalty
A fee imposed for not enrolling in a Medicare Prescription Drug Plan during the Open Enrollment Period.  This will be at least 1% of your premium cost per month, for every month you delayed enrolling in a plan.  There is no limit to the percentage, and it will last as long as you are enrolled in a Medicare Prescription Drug Plan.  This penalty will not apply if you already have a plan that offers coverage as good as that offered in a Medicare Prescription Drug Plan.