What Is Medicare Part D
April 3rd, 2010 | Published in Medicare Information
Medicare part D is the latest addition to the government health care plan for seniors. These plans offer the senior much needed coverage for prescription drugs that often bite deeply into their budget. However, not all seniors are eligible for the Medicare part D plan.
The original parts of Medicare, A and B, cover hospital costs and doctors visits plus some other items, but it doesn’t have provisions for prescription drugs. When Congress added Medicare part C, it was in an attempt to offer managed care to seniors. Some of these plans contained provisions for coverage on prescription drugs. This meant that those that chose the Medicare Advantage programs had more benefits, often at lower costs than those that stayed with the traditional Medicare.
Even though some Medicare supplements offered coverage for prescriptions, the coverage was minimal, normally about $800 or less, and often required that you meet the higher deductible of the policy before it paid anything. Those using the original coverage received less than those that switched to the newer Medicare Advantage plans. The difference in coverage was important since many seniors have a high monthly prescription cost. This precipitated the creation of Medicare part D. If you are involved with a Medicare Advantage plan that covers prescription drug costs, you aren’t eligible to participate since it would be overlapping coverage.
Every Medicare Advantage plan is slightly different. Once company may carry several plans that offer a different premium, different deductibles if they have one and different co-pays. Each company varies by the classification of certain drugs. Some companies offer to cover drugs omitted from the list of those required by the Medicare perimeters. Before you decide to purchase a Medicare part D plan, it’s important that you look at all the features and costs of the plan.
People that don’t use any prescription drugs on a regular basis might want to consider a lower cost basic plan. These normally have higher deductibles or co-pays but the difference in monthly cost is significant. In this case, you won’t be paying a higher price for something you seldom use. It’s similar to purchasing dog food on sale simply because you think you might have a pet one day but don’t own one now. It’s best, in this case, to save the money for the time you need the coverage.
You might be one of the people that take a prescription drug not included in the original list. An example of this would be those using prescription vitamins. In this case, you need to find an insurance policy that pays for your prescription. Companies have the right to include these prescriptions if they so desire, but aren’t required to do so. Look at the list of drugs the policy covers before you purchase.
You also need to find out how much the co-pay for each drug you use is in every policy you consider. If the cost of the co-pay gives a substantial savings over any increase in premium you receive for the reduced co-pay, that plan may be the most beneficial for your situation.