Tip: Lots of Medicare decisions for baby boomers

Baby boomers, welcome to the Medicare maze.

The nation's first boomers - those born in 1946 - become eligible for Medicare when they turn 65 in 2011. While Medicare Part A hospital coverage is premium-free, the rest of Medicare's programs have some out-of-pocket costs and take some decisions and work. Perhaps the most perplexing choices are presented by Medicare Part D, the prescription drug program. Those turning 65 in 2011 can apply for Medicare Part D three months before their birthday and as long as three months after they turn 65.

But those already enrolled in Medicare Part D must decide whether to stay in their current plan or choose a new one during the open enrollment period, which begins Monday and ends Dec. 31.

The number of plans in New York for 2011 has fallen to 30 from 50 this year. The reason for the decline is a result of the Centers for Medicare and Medicaid Services requesting drug plan operators to merge any of their plans that were overly similar and eliminate plans that had few beneficiaries.

The biggest change in 2011 relates to the coverage gap, or doughnut hole, which begins after $2,840 has been paid in drug costs by you and your drug plan. In the past, those who hit the doughnut hole had to pay the full cost of drugs unless they were in a higher-premium plan that included some gap coverage. In 2011, recipients will receive a 50 percent discount on brand-name drugs and a 7 percent discount on generics they purchase when they are in the coverage gap. Those whose plan already includes some gap coverage will get the discount on top of whatever subsidy they receive from their plan.

You can compare plans and sign up by using the "Compare Drug Plans" tool at medicare.com. Before picking a plan, take the time to input the drugs you are taking. This way you get a better idea of how much each of the individual plans will cost you.

If you have trouble navigating the website or have questions, call Medicare at 800-MEDICARE (800-633-4227). If the medicare.gov site is slow, you can visit q1medicare.com, an independent, for-profit company with information that mirrors the official Medicare site and also offers tutorials and tips.