What is a prescription drug plan?
Medicare Prescription Drug Plans (also known as Part D), can help you cover the cost of prescription medications. It is an optional benefit offered to everyone who has Medicare, and one that I recommend.
Here's a breakdown of what you need to know:
Monthly Premium
Every prescription drug plan has a monthly premium that you can pay by check, automatic bank draft, or automatic deduction from your social security check.
Deductible
Some prescription drug plans have a $310 calendar year deductible. These plans tend to have lower monthly premiums and lower co-payments. However, plans with deductibles can be unattractive for people who turn 65 late in the year as the deductible re-sets every year on January 1st.
Co-payments
Every prescription drug plan available will have different co-payments for different prescriptions. Furthermore, some plans will have preferred pharmacies that will offer lower co-payments for select plans.
Formulary
Different prescription drug plans have different drug formularies and can cover medications that other plans may not. However, all plans are required to offer coverage for prescriptions in every therapeutic category.
Star Ratings
The Center for Medicare Services assigns star ratings to each plan giving consumers the ability to identify high performing plans from under-performing plans.
How I can help
There are over 25 different plan options in most areas, and they all have different monthly premiums, cover different prescriptions, and have different co-pays for each prescription you are taking. Furthermore, these plans change significantly every year.
We compare all prescription drug plans using Medicare’s plan finder. You will receive a detailed analysis including monthly premiums, co-payments, ratings, and additional information. Please do not hesitate to call our toll free number 1 (800) 807-0177 if you have any questions.