Medicare Prescription Drug Plans (Medicare Part D)

Part D of Medicare covers prescription drugs, and anyone enrolled in Medicare Part A or Medicare Part B is eligible for this coverage, regardless of income and resources, health status, or current prescription drug expenses.

Participation in Part D is voluntary and can be especially helpful for people who have high prescription drug costs and no current prescription drug coverage. Medicare prescription drug plans pay for generic and brand name prescription drugs. As with Medicare Part B, there are monthly premiums, deductibles, and copayments. To receive Part D benefits, you must pick a plan offered by a Medicare-approved private insurance company. Availability of Part D plans varies from area to area.

There are four phases associated with Medicare Part D prescription drug coverage. During the deductible stage, you’re responsible for paying any deductible your plan requires you to pay before your drug plan begins making payments for your prescription drugs. Once your deductible is met, you enter the initial coverage stage, which normally requires you to pay co-payments or coinsurance.

Next is the donut hole or coverage gap stage, where typically you’ll pay drug costs out of pocket. Once your total out-of-pocket costs (including your yearly deductible, copayment, and coinsurance amounts) reach a set amount, you enter the catastrophic coverage stage, where you automatically get catastrophic coverage and are required to pay only a small copayment or coinsurance amount for the rest of the year.

Key Changes for 2013

Your deductible will increase from $320 to $325.

Your initial coverage limit will increase from $2,930 to $2,970.

Your out-of-pocket (donut hole) threshold will increase from $4,700 to $4,750.

Your minimum cost-sharing will increase slightly during the catastrophic coverage stage.

For further details about Rx benefit changes from this year to next, click here

Despite the slight changes in Medicare Part D coverage and the small increase in costs to you over the next year, Medicare prescription drug plans remain a wise investment for most people.

If you’d like to know more about Medicare prescription drug plans, contact MedicareMall now and one of our licensed, bonded representatives will be happy to answer any questions and help you find the prescription drug plan that‘s best for you and your wallet.

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