What is Medicare Part D?
Part D is the prescription drug coverage for all Medicare recipients. This coverage is not provided by the government. Private insurance companies, approved by CMS, provide the drug coverage.
You should consider enrolling in a Medicare drug plan as soon as you are eligible unless you have creditable drug coverage. If you wait to enroll, you will end up paying a late enrollment fee. This means higher premiums if you join later. You must prove creditable drug coverage. Creditable drug coverage does not include discount cards, manufacturer sponsored pharmacy assistance programs, doctors samples, free clinics and drug discount Websites.
If you are already be enrolled in either Medicare Part A, or Part B or both, you can add Part D. Also, it is possible to add a Medicare prescription drug plan to some Medicare cost plans, some Private Fee for Service plans and Medicare Savings Account plans.
Another way to get drug coverage is by enrolling in a Medicare Advantage (MA) Plan includes drug coverage. MA plans offer more coverage than traditional Medicare. Many of these plans also include prescription drug coverage. Similar to Part D, These Medicare approved plans are run by private insurance companies. Medicare Advantage plans are also know as Medicare Part C.
What is Medicare Part D? – The Differences
Costs and coverage are different for each Medicare drug plan. However, all plans must provide standard level of coverage. Most drug plans charge a monthly fee for Part D coverage. This fee varies with each plan. The fee is in addition to the Part B premium. If your prescription coverage is part of Medicare Part C, or it is part of a Medicare Cost Plan, the cost of coverage is most likely included in the Part C premium.
Another cost that varies among plans is the yearly deductible. This is the total amount you will pay first for you prescriptions before your plan will pay. Some plans may have no yearly deductible.
Co-payment or co-insurance is another cost you need to consider when reviewing plans. After you pay your deductible, you may still have to pay part of the cost of the medication. you do this when you buy the medicine. You pay your share up front to the pharmacy, and the pharmacy bills the insurance company for the rest.
Most Medicare drug plans have a coverage gap. At some point when your drug purchases exceed a certain amount, you will have to pay for your prescriptions by yourself up to another yearly out-of-pocket limit. In addition to your out-of-pocket costs, your yearly deductible and any co-payments or co-insurance count toward this limit. However, your monthly premiums do not count.
What is Medicare Part D? – Chosing
By now you should have some idea about what is Medicare part D. Now you need to choose.
There are many choices for prescription coverage under Medicare. Medicare Part D plans vary in cost and benefits. So you need to do some research. One method to research is to check out some actual plans. You can find sponsors at the top and bottom of this post. Select any, and they will be more than happy to explain to you in detail the costs and benefits of their plan. You will need to compare several plans to make sure you understand all the costs.