If you’re a beneficiary of the federal Medicare health insurance program, you have until the end of this month to sign up for a prescription drug plan under Medicare Part D, which helps cover your outpatient prescription drug costs.

What if you’re already enrolled in a different type of Medicare plan, called a Medicare Advantage plan? That’s the issue that a man from Tiverton raised in a call to MoneyLine:

Q: In your article regarding Medicare plans on Nov. 18th, you mentioned a company named Coventry Health Care . . . . I had last year Blue CHiP for Medicare, and I tried to get a standalone plan like the one that’s offered by Coventry. Blue CHiP told me I could not do that, because I would then be in two Medicare plans and you can only have one. . . . I’m really not sure why I could not go to the separate standalone plan . . . .

– L.S., Tiverton

A: You’ve raised a good point, especially because so many Rhode Islanders take part in Medicare Advantage plans.

If you’re in a Medicare Advantage plan — such as one of the “Blue CHiP” plans offered through Blue Cross & Blue Shield of Rhode Island — you can’t also take part in a Medicare prescription drug plan, said Larry Grimaldi, chief of program planning for the Rhode Island Department of Elderly Affairs.

Medicare Advantage plans, sometimes called Medicare managed-care plans, generally work like an HMO, offering one-stop shopping.

You typically must use the plan’s network of doctors, hospitals and pharmacies. In return, you receive health insurance coverage — including preventive care and prescription drug coverage — in a single plan.

Mainly for that reason, you generally can’t be enrolled in a Medicare Advantage plan and a standalone Medicare prescription drug program at the same time, Grimaldi said in an interview in his office in Cranston last week.

In other words, you can’t have prescription drug coverage from two Medicare plans at the same time, he said.

If you take part in a Medicare Advantage plan, and sign up for a standalone prescription drug plan under Medicare’s Part D, you’ll be “dis-enrolled” from the Medicare Advantage plan.

What to do? If you’re in a Medicare Advantage plan, and want more drug coverage, search for a Medicare Advantage plan that better suits your needs, Grimaldi said.

Rhode Island’s Medicare beneficiaries have 12 Medicare Advantage plans from which to choose for 2008, which is one more than this year.

Total monthly premiums range from $0 to $176. Some plans have an annual drug deductible, but most don’t. Some provide at least some coverage in what’s known as the “coverage gap,” but others don’t.

There are several BlueCHiP plans, all offered through Blue Cross. The total monthly premium varies, from $14 to $176. (Only one provides coverage in the gap — for generic drugs.)

As of earlier this year, about 54,000 Medicare beneficiaries in Rhode Island were enrolled in Medicare Advantage plans with drug coverage, according to figures provided by the federal Centers for Medicare & Medicaid Services. That compares with about 31,500 Rhode Island beneficiaries in standalone Medicare prescription drug plans.

If you don’t want to take part in a Medicare Advantage plan, consider taking the following steps, Grimaldi said:

•Switch to traditional Medicare.

•Obtain a supplemental plan (called a “Medigap” plan) to help cover some of the things that traditional Medicare does not.

•Sign up for a Medicare standalone prescription drug plan.

Whatever course you pursue, “Don’t pick [a plan] by premium price but by coverage,” Grimaldi said. In other words, don’t choose a plan based solely on the amount of the monthly premium it charges.

Instead, consider other factors, such as whether a plan covers the type of drugs you need, he said.

For more information, read the “Medicare & You” booklet that was recently mailed to Medicare beneficiaries.

The Medicare Web site has updated online tools that you can use to help pick a plan that suits you best:

www.medicare.gov

You may also call the Medicare program toll-free at 1-800-633-4227.

For information about free local workshops, or how to obtain free, one-on-one counseling, call the state Department of Elderly Affairs at 1-401-462-4000, or call “The Point,” which is the state’s call resource center for elders and those with disabilities, at (401) 462-4444. Or use these Web sites:

www.dea.state.ri.us

www.ThePointRI.org

Q: I’ve just come into an inheritance . . . and I wanted to give one of my aunts around $10,000, and I wanted to know what is the maximum that I can gift to someone, and what are the ramifications of giving that to someone as far as a tax situation. . . .

– P.C., Pawtucket

A: Here’s the general rule:

You may give your spouse an unlimited amount without triggering federal gift-tax consequences.

However, a dollar limit generally applies if you make a gift to anyone other than your spouse.

For this year, the limit is $12,000.

The Internal Revenue Service recently announced that the limit for next year will be $12,000, too.

The limit applies to the value of gifts you give to someone else, such as your aunt.

So you could give your aunt $12,000 this year, and you could give your aunt another $12,000 next year, and you wouldn’t have to worry about any limits, because a separate limit applies to each year.

What if you exceed the limit in any given year? For most people, it’s no big deal. Some people, however, could eventually wind up triggering federal gift-tax consequences as a result.

To learn more about how federal gift-tax rules apply, including special rules that apply to married couples who make joint gifts, read Internal Revenue Service Publication 950, “Introduction to Estate and Gift Taxes.”

For a free copy, visit your local IRS office, call the agency toll-free at 1-800-829-3676, or use this Web site:

www.irs.gov/formspubs

TODAY’S TIP: Looking to buy a home? Credit may be tougher to get nowadays, but good loan programs are still available, according to the latest issue of “FDIC Consumer News,” a newsletter published by the Federal Deposit Insurance Corporation.

The fall 2007 issue provides a brief explanation of what’s happened in the housing market lately.

It also offers tips for people who are searching for a new mortgage loan or seeking to refinance. It explains some of the different types of loans available, and suggests ways to avoid deceptive sales practices.

For a free copy, or for a free subscription, call the FDIC toll-free at 1-877-275-3342, or use this Web site:

www.fdic.gov/consumernews

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