What is Medicare Part D?

What is Medicare Part D?

Medicare Part D, also known as Medicare prescription drugs, is a program by the federal government which subsidizes prescription drugs cost and insurance premiums for prescription drugs for Medicare beneficiaries. It came into effect under the Medicare Modernization Act of 2003 and became effective on January 1, 2006. The Part D policies are managed by private insurance firms.

Penalty for late registration

Medicare Part D is available to beneficiaries of Medicare who do not have credible drug protection (usually VA or coverage for employers). Beneficiaries who do not have credible prescription drug coverage must register if they are eligible to avoid a late enrollment penalty. The late registration fee is 1% of the average national premium, which was $ 33.13 in 2015. There was no coverage for each month. This bonus is adjusted every year, added to your monthly premium and paid for the rest of your life.

Standard benefits of Part D, 2015:

Phase 1: Deductible: $ 320

Phase 2: primary insurance phase: the participant contributes 25% of the costs of medications and the policy covers 75%.

Phase 3: Coverage Gap (period without coverage): the gap is reached once the participant and the policy have made COMBINED payments of $ 2960. Once this limit is reached, the member pays 45% for brand name drugs and 65% for generics. The policy will pay 5% and 35%, respectively.

Phase 4 РCatastrophic Coverage: This phase kicks in once the participant and the policy paid COMBINED $ 7062 in estimated total drug costs. Once this limit is reached, the participant pays 5%, the policy, 15% and Medicare, 80%.  These benefits will be reinstated on January 1; and the benefits described above are also changing every year.

How to switch to Part D and save on medication costs.

The cost of prescription drugs can be the highest monthly cost for many Medicare beneficiaries. We talk to many older people who need to make real decisions, pay their prescriptions, buy groceries or pay utility bills. Some refrain from fully complying with their regulations for cost reasons and endanger their health.

Here is a list of things you can do to keep medication costs to a minimum:

  1. Make an appointment with your doctor to review all of your prescription medications. Nowadays, people are prescribed by several doctors. Specialists and other health professionals often participate, and it is important that your family doctor be aware of all the medications you take. Your doctor can be sure that you are not taking any duplicate medication.
  2. New generics come to market almost every day! Your doctor can determine if there are generic drugs or brand-name drugs with lower costs that can replace some of the expensive brand-name drugs.
  3. Use the delivery pharmacies of the policy, which generally offer lower co payments and convenient delivery of prescriptions right at the door.
  4. Take the FREE health check every year. In prevention, our health system is moving. If you manage the risk factors today, the future costs of treatment will be reduced.