Alabama Medicare Part D 2020 Updates
There are more Alabama Medicare Part D Plans (PDPs) in 2020 than in previous years. The bad news is that the standard initial deductible is now $435 per year, that's an increase of $20 over last year. However, the Initial Coverage Limit increased 5% to a new high of $4,020.
2020 Medicare Part D Standard Initial Deductible
The initial deductible is the amount that you pay before your Medicare Part D plan begins paying its share of the costs. So, if you enroll in a 2020 prescription drug plan with a standard initial deductible, you'll spend $20 more out-of-pocket in 2020 before coverage begins. Most Medicare Part D plans have an initial deductible, but many popular Medicare Part D plans exclude Tier 1 and Tier 2 drugs from the deductible, giving immediate coverage on most lower-cost medications.
2020 Medicare Part D Initial Coverage Limit (ICL)
The 2020 Initial Coverage Limit (ICL) is $4,020, up 5% from last year. The Coverage Gap (donut hole) starts when you reach the ICL and ends when you spend a total of $5,100. The Initial Coverage Limit marks the coverage gap entry point. You enter the coverage gap when the total negotiated retail value of your prescription drug purchases exceed your plan’s Initial Coverage Limit.
2020 Coverage Gap (Donut Hole) Details
An easy way to estimate if you will run out of coverage is to look at that average monthly cost of your medications. If your prescriptions have an average retail value of over $335 per month, you will enter the 2020 Donut Hole at some point in the year. This assumes that your current retail drug prices remaining stable.
The 2020 Donut Hole Discount is 75% for Generic Drugs
If you reach the 2020 Coverage Gap phase of your Part D coverage, the generic drug discount will be 75% (up from 63%). This means your generic drug costs in the Donut Hole will be 25% of your Part D plan's negotiated retail prices. What you pay counts towards your true out-of-pocket costs (This amount counts toward your TrOOP).
The 2020 Donut Hole Discount is 75% for Brand-Name MedicationsThe 2020 brand-name Coverage Gap discount remains the same at 75%. The pharmaceutical industry is responsible for picking up 70% of the cost of medications for beneficiaries in the Donut Hole. You get credit for 95% of the retail drug cost toward meeting your 2020 total out-of-pocket maximum or Donut Hole exit point.
How Much Will You Spend To Exit The Donut Hole in 2020?
Your Total Out-of-Pocket Cost (TrOOP) threshold will increase to $6,350 in 2020. That's $1,275 more than the 2019 TrOOP limit of $5,100. TrOOP is the dollar amount you'll spend to get out of the Donut Hole or Coverage Gap and into your Medicare Part D plan's Catastrophic Coverage phase.
It's important to remember that TrOOP doesn't include your monthly premiums or over the counter purchases. Some plans offer additional gap coverage, so look for it on the plan information pages.
Evaluate Part D Medicare plans wisely. If you have a regular prescription or two, we suggest that you verify that the plan you want offers your medication(s) at a good price. You find this information in the formulary. We post links to the formulary and pharmacy web pages, as well as the plan's phone number, on each of the PDP pages listed above.
IMPORTANT: Identifying the best Medicare Part D Plans for you takes a bit of research. What's best for you is personal and must consider multiple factors, including your regular prescriptions, your health and your finances.
Did you Know Most Alabama Medicare Advantage Plans Include Prescription Drug Coverage?
Your Medicare benefits are flexible, and there's more than one way to get prescription drug coverage. If you want to keep your Original Medicare, you can enroll in one of the stand-alone Medicare Prescription Drug Plans listed above. The other way to get Part D is by enrolling in one of the Alabama Medicare Advantage Plans that include prescription coverage.
Medicare Part D and Supplements Work Together
Medicare does not pay for all of your hospitalization and doctor bills. Even with the new healthcare law fully in place, your Original Medicare only pays about 80 percent of your Alabama healthcare bills. We keep an up-to-date catalog of Alabama Medigap Plans, also call a Medicare Supplement, with the tools you need to find the best price and coverage. The Medicare PartD plans above are fully compatible with Alabama supplemental insurance.
Getting Medicare Part D with Alabama Medicaid
If you meet the requirements for both Medicare and Medicaid (aka, dual eligible or Medi-Medi) in Alabama, you will automatically receive a Medicare Prescription Drug Plan, as well as Extra Help from Social Security. If you qualify for Extra Help, the program will cover most of the costs of your prescriptions. Even if you qualify, the dual eligible option may not suit your needs. In this case, enroll in the prescription drug plan of your choice. If you receive Medicaid now, call your local Medicaid office for assistance with your dual eligible benefits.
Best Alabama Medicare Part D Plans
Each year we highlight the Alabama PDP's with the lowest cost, most members, and the best ratings. Below are the best 2020 Medicare Part D plans based on these metrics.
Lowest Costs PDP
- The cheapest Alabama Part D Plan with no deductible is $29.60
- The cheapest Alabama Part D Plan with a deductible ($435.00/year) is $13.20
Most Popular Nation-Wide PDP
- BlueRx Enhanced Plus (0 national members)
- BlueRx Essential (0 national members)
- BlueRx Enhanced (0 national members)
Most Popular Part D Plans in Alabama
- BlueRx Enhanced Plus (0 regional members)
- BlueRx Essential (0 regional members)
- BlueRx Enhanced (0 regional members)
Most Popular Low-Income Subsidy Medicare Part D Plans
- WellCare Classic (0 national members)
- SilverScript Choice (0 national members)
- Cigna-HealthSpring Rx Secure (0 national members)
PDP Eligibility and Availability
You are eligible to enroll in a Alabama PDP plan if:
- You are a resident of the state,
- You are enrolled in Medicare Part A and Medicare Part B, and
- You are age 65+ or have Medicare due to a qualifying disability.
All plans on this page are available to beneficiaries in Birmingham, Auburn, Decatur, Dothan, Huntsville, Mobile, Montgomery, Tuscaloosa, and all rural areas of Alabama.