The Medicare Modernization Act of 2003 created prescription drug coverage for all Medicare beneficiaries. This coverage went into effect January 1st of 2006. What is Medicare Part D and how do make the most of your prescription drug coverage?

As of January 2006, there are three components to Medicare. These components are Part A (Hospitalization Insurance), Part B (Medical Insurance), and Part D (Prescription Drug Coverage). Prescription drug coverage under Medicare works like any other Prescription drug insurance on the market today.

When you enroll in Medicare Part D you are signing up with a private insurance company appointed by Medicare to administer your plan. Part D providers and their plan offerings vary by region. There are dozens of providers and even more plans to choose from; all of these plans cover prescriptions differently and not all of them may cover the medicines you take.

How do you know which plan to sign up for? First, start by making a list of all the medication you take. List it by the medications name, brand versus generic, and how often you take it. Next, contact Medicare at their toll free number: 1-800-633-4227, and ask them for a list of Part D providers in your area.

You will receive a list of private insurance companies appointed by Medicare to administer Part D plans in your area. Finally, you will need to contact each of these insurance companies with the list of medications you prepared earlier. You need to shop around for the best deal for all the medications you take. You are looking for a plan with the lowest monthly premium that covers all the medications you are taking, and offers the greatest flexibility of coverage. This is not an easy task.

If you find the process overwhelming a Medicare representative can talk you through the process. When trying to make sense of the new changes to Medicare remember the old clich: Whats the best way to eat an elephant? One bite at a time. Start by making your list of medications and calling Medicare today.