*Participant must pay 100% of the first $250 (calendar year deductible) each year.

*Participant pays 25% of the next $2,000 per calendar year.

*Participant pays 100% of the next $2,850 per calendar year.

*Participant pays 5% over $5,100 per calendar year.

How would Part D affect United American? We are currently in negotiations for UA to offer a private prescription drug plan (PDP) to administer the Part D program, and the particulars of the process are carefully being examined. There are a lot of issues to consider from both a practical and administrative perspective, and it will be later in the year before plans will be finalized. In the meantime, you can offer UA Partners® to your Senior customers. Our optional discount services program can provide them with outstanding discounts on prescription medications. Be sure to see the article on page 5 for valuable information about the UA Partners® Mail Order Prescription Form, which was specifically created to help Seniors order maintenance medications.

Although the Part D plan does not go into effect until January, Medicare beneficiaries will start to receive information from the government about aspects of the program beginning this month. The first mailing, which will be sent by the Social Security Administration, is to determine which Medicare beneficiaries could be eligible for additional assistance with Part D premiums, deductibles, and co-payments. Although most people may not qualify for this extra assistance, recipients who could qualify will need to provide information about their incomes, savings, investments, and real estate (other than their primary place of residence). The face value of any insurance policies they have will be considered in determining their eligibility for assistance. If a couple has life insurance policies with a total combined face value of $1,500 or more, they must report the cash value – that is the amount they would receive if the life policy was cashed in now. The mailing also encourages recipients to contact their insurance companies if they have questions about their life policies and includes FAQs about prescription drug plans in general. Although many of our customers may not be eligible for extra assistance with the New Part D plan, the Home Office is gearing up for more calls from customers, and Agents need to be prepared for an increase in customer contact as well.

Learn as much as you can to assist your Senior customers through the next months. With the Medicare maze growing larger and more complex every year, your customers will look to you for clarification of many Medicare-related concerns. Although many of you are working with very savvy Seniors, there is still a substantial group of Medicare Supplement customers and prospects who are not well-informed about their healthcare needs. It’s up to you to educate them and to help them make the right choices and decisions. Certainly, one of the best ways to educate Seniors on the new Medicare Part D Program is to utilize Senior Citizen Meetings to answer their questions. When you tell these groups’ members that there will be an explanation of a new program to save them money on their prescription drugs, it will be an easy way to get a large turnout for your meetings. Naturally, this will generate lots of interested HDF prospects too! What a perfect marriage of two low-cost solutions for curious Seniors!

Our center spread this month is devoted to Medicare Part D. It provides a quick review of the current Medicare system, some important dates to keep in mind, and some of the concerns both you and your customers will have about Part D.

Medicare Part D is a new program, and there are still many unknowns. For the remainder of 2005, the plan and the processes to implement and administer it will continue to evolve as the rules become fixed and as more insurers make decisions about participating. We will keep you informed as the months go by, so that we’ll all be ready to roll come January 1, 2006.