| |
A Step-by-Step Guide to Medicare Part D's Prescription Drug Plan
By Katerina Mitrou
If you're like many Americans, the introduction of Medicare Part D is nothing short of confusing.
By May 15 of this year, if you haven¡¯t signed up for the program, you could
end up without drug coverage, or have to pay the penalty for applying
after the deadline. The penalty is a 1% increase in your premium for each
month after May 2006 in which you don¡¯t enroll.
The following is a step-by-step guide designed to get down to the basics of
Medicare Part D, cut through the jargon, and tells you exactly what you
need to know.
Step #1: Eligibility. Are you eligible for Medicare¡¯s new prescription drug
plan? Simply put, if you are eligible for Medicare Part A or Part B, you are
eligible for Part D.
Step #2: Cost. What will Medicare Part D cost you? For drug expenses in
the range of $0-$250, you pay 100% of the cost. When and if your costs
fall between $250-$2,250, the plan pays for 75%, and you pay for 25%.
At this point, the infamous coverage gap, often referred to as the "donut
hole," comes into play. Essentially, if your total drug costs, which include
what you and the plan pay for prescriptions, exceed $2,250 per year, you
pay 100% of your drug costs after that point until you reach $3,600 in out-
of-pocket expenses (total $5,100 in drug costs). But after you escape from
the "donut hole," you only have to pay for 5% of your drug costs.
What you pay also includes the usual insurance costs associated with a
drug plan. If you do not qualify for extra help, you will pay: monthly
premiums, a yearly deductible, and co-pay or co-insurance for each
prescription.
If you qualify for extra help due to a limited income, you will pay: low or no
monthly premiums, low or no yearly deductible, low or no co-pay or co-
insurance for each prescription, and you don¡¯t have to worry about the
coverage gap.
Through Medicare¡¯s prescription drug plan, you must choose drug coverage
from one of the many private plans made available for the purpose of
Medicare Part D. This is usually the point at which people become the most
confused. There is a wide range of plans from which to choose, and in the
end, the right one for you depends on your unique circumstances. Search
for the plan that offers the lowest total costs for the year, including your
premiums, deductibles, co-payments or co-insurance for each prescription,
and any drug costs you pay during the coverage gap.
To best compare the available plans, visit the http://www.medicare.gov
prescription drug plan finder.
Step #3: Drugs Covered. Choosing an insurance plan also requires that
you make a selection based on the specific drugs you need. The list of
drugs covered is called a formulary. So when determining which plan is best
for you, cost is only one consideration - you must also make a choice based
on the type of drugs covered. Generic and brand name drugs are included
in the formularies, but if a drug you take is not on the list, you will either
have to pay for it in full, or switch to a similar drug that is covered by the
plan.
Step #4: Joining. Signing up for a plan is, luckily, easier than you may think.
You can either sign up through the plan¡¯s website or through Medicare.gov.
Another option: call the company offering the plan you desire, or call
Medicare directly.
About the Author
This article was written by Katerina Mitrou sponsored by http://www.medicare-news.com. Medicare-news.com provides news articles, updates, Q and A, and tutorials to help people understand all parts of Medicare with a special focus on Medicare Part D (the prescription drug plan). Reproductions of this article are encouraged but must include a link pointing to http://www.medicare-news.com.
Article Source: http://www.simplysearch4it.com/article/27369.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/27369.html" as shown above and make it hyperlinked. |
| |
|
