Medicare Part D is a part of Medicare that provides you with access to prescription drugs. This plan is offered by Medicare-approved private insurance companies.
The plan also provides insurance against the cost of catastrophic drugs. The cost of Medicare Part D mostly depends on the prescription drug plan the beneficiary chooses and whether they qualify for Extra Help, which helps cover part of the coverage cost. The cost of Medicare Part D includes several things like:
Medicare Part D Monthly Premiums
The monthly premiums for Medicare Part D drug plans depend on the type of plan that you select. With that said, the average monthly premium for Medicare Part D is about $33 monthly. There are several Part D plans available on the market. Each private insurer creates its own list of prescription drugs covered by the plan to establish what they will charge as a monthly premium.
Medicare Part D Deductible
Each year, the CMS sets the minimum standards for Medicare Part D. Every private insurer providing Medicare Part D plans are mandated to follow these standards. In 2020, the highest deductible a Medicare Part D plan can charge is $435. And some plans will pay for your prescription drugs right away because they offer $0 deductibles.
Other Part D plans provide a lower deductible than the maximum, such as $250 or $150. If your plan has the lowest overall cost per year, you can want to select a Part D plan with a $0 deductible.
Medicare Part D Coinsurance and Copayments
A copayment is a fixed amount for your medication. For instance, a Medicare beneficiary might have to pay $10 for a generic medication, $30 for a preferred brand name medication, and $50 for a non-preferred brand name prescription drug.
Coinsurance is the percentage of the price you pay for a prescription drug. Part D usually require coinsurance for prescription drugs listed in the higher tiers. For instance, if your prescription drug cost $400, and your coinsurance is 25 percent, you’ll pay $100. Sometimes, some of your medications require a coinsurance and others a fixed copayment. So, check each of your medications before enrolling for a plan.
Extra Help for Medicare Part D
Extra Help is designed to help Medicare beneficiaries with limited resources and income to pay for prescription drug costs, coinsurance, deductibles, and premiums.
To qualify, you must be receiving Medicare, residing in the U.S., and have limited resources and income. Some people get this automatically, and your Part D plan may require you to give information to help determine the level of help you should get.
At Temmen Insurance, our experienced insurance agents will happily offer assistance in helping you choose a Part D plan. Give us a call today.