How much is Medicare Part D coverage?
- What you pay for a Medicare Prescription Drug Plan (Part D) depends on the plan you choose.
- In addition to the monthly premium, you also pay an annual deductible and co-pays at the pharmacy.
- To get prescription coverage, a beneficiary must join a plan approved by Medicare.
- Each plan varies in costs and the drugs it covers.
The cost of a Medicare Part D plan varies. It’s all based on the monthly premiums, yearly deductibles, co-payments, costs in the coverage gap (also known as “donut hole”), and the beneficiary’s prescriptions.
Beneficiaries who meet certain income requirements (both high and low) will have different plan costs. Depending on the coverage in each particular plan, other factors will change the cost of a Part D plan, such as which prescriptions are used and whether they are included in the plan’s formulary and the tier at which they are covered. Pharmacies also play a factor, as each plan has different contracts, including preferred pharmacies.
One of the biggest mistakes that many seniors make is keeping the same prescription drug plan, year-after-year, without comparing costs. Medicare experts agree, it’s important to compare prices and coverage every year to make sure you’re getting the very best deal for your unique situation (e.g., prescriptions, where you live, preferred pharmacy, and budget).