Navigating the New Medicare Drug Plan

Because you're reading this column at TheStreet.com, odds are you haven't given Medicare a thought. But if you don't want to end up paying some very expensive prescription drug bills for your mom or dad (or even grandma), you should encourage them to sign up for the new Medicare prescription drug benefit -- even if they aren't taking any pills right now.

Medicare Part D, as it's called, is an exercise in governmental complexity that far outranks the Alternative Minimum Tax and the Earned Income Credit combined! The government put together a plan that involves a monthly payment, a deductible, co-payments, a "doughnut hole" during which no benefits are paid, and "catastrophic" coverage that will cover most costs for seniors who must regularly take very expensive prescriptions.

Don't try to figure it out! It has taken me weeks to condense that description. Fortunately, Medicare Part D is a government plan design; it's being implemented and offered by private insurance companies on a competitive basis. They're spending a lot of money to convince your parents that they have the best plan. The result is a pile of confusing booklets and ads directed at seniors. ...