The Standard Medicare Benefit               BASIC MATH - Page 21  Lucent 2006 PDP If your total drug costs in calendar year 2006 are: Medicare Drug Plan Pays And you pay            (assuming no other drug coverage): You pay ( assuming no Med-D or other drug coverage): $0-$250                     (Deductible) $0 Up to $250* Medco by Mail - 90 supply:        $20 / generic X4=$80                     $50 / formulatory X 4 = $200             $80 / nonformulatory X 4=$320        Out of Pocket maximum =$1,500      $251-$2,250                                         (initial coverage) 75% up to $1,500 25% up to $500* Medco by Mail - 90 supply:            $20 / generic X 4 =$80              $50 / formulatory X 4 = $200      $80 / nonformulatory X 4 = $320        Out of Pocket maximum = $1,500       $2,250-$5,100   (coverage gap) $0 100% up to $2,850* Medco by Mail - 90 supply:       $20 / generic X 4 = $80        $50 / formulatory X 4 = $200       $80 / nonformulatory X 4 = $320         Out of Pocket maximum = $1,500       Maximum payments at this level >  Up to $1,500 Up to $3,600 Medco by Mail - 90 supply:         $20 / generic X 4 = $80         $50 / formulatory X 4 = $200       $80 / nonformulatory X 4 = $320         Out of Pocket maximum = $1,500       Over $5,100 (catastrophic coverage) 95% 5% or                                     $2 co pay / generic                  $5 co pay / brand name Medco by Mail - 90 supply:       $20 / generic X 4 = $80        $50 / formulatory X 4 = $200        $80 / nonformulatory X 4 = $320         Out of Pocket maximum = $1,500       * You also pay premiums (about $32 / mo. or $384 a year). With a $250 deductible, your minimum out of pocket will be $634. Many plans will offer lower premiums and deductibles. Some will fill in part of the coverage gap for a higher premium.  No "by Mail" deductible or premium - Deducible & Co-pays apply toward $1,500 Out of Pocket Maximum.  Medigap Prescription Drug coverage may not offer a good solution should Lucent PDP coverage be dropped. Medigap H, I, and J Plans carry premiums of $225 to $287 / person / month (in Texas) and offer less coverage than Med - D. Plans H & I have a $1,250 annual limit and cover "Basic Drugs" only, whereas Plan J offers "Extended Drugs" and a $3,000 limit. According to the AARP's Special Report (see page 22, question #28), you may keep Medigap coverage but if you do you cannot also have Med-D coverage. Question #28 contains a "Note" that states you cannot use medigap to pay out-of-pocket costs in Medicare drug coverage. No new medigap policies covering drugs will be sold after Jan 1, 2006. There may be other plans that offer good coverage but those that cover the doughnut hole may be very expensive. Note: This document is information only. Readers are cautioned to make an independent analysis and decision.