If you are new to the Medicare system, the options available and guidelines that govern the program can seem overwhelming. Medicare Part D is the prescription drug portion of the program.
Although, it is not mandatory to sign up for this coverage, most people find that it gives peace of mind in the event of unexpected medication expenses. There are many different plans available, so one of the first things to do is confirm eligibility. If you are eligible to enroll in Parts A and B, you are eligible for the drug coverage plan.
If you do not join Medicare Part D during the initial enrollment period, you may have to pay a penalty if you join later. In some instances, you may be able to keep the coverage that you have now. In other cases, you may find that the Medicare options are more suited to your current and potential future needs.
Even if you are experiencing good health now, enrolling in the program will provide you with assistance if that changes unexpectedly. It can protect you from very high medication expenses. Depending on your situation, you may qualify for help with the premiums and co-payments.
If you do, monthly premiums may be lowered, deductibles waived, and co-pays removed. If you do not qualify for extra help with costs, you will be responsible for monthly premiums, any yearly deductibles and co-insurance amounts for each prescription. In most circumstances, you should look for Medicare Part D plans with the lowest overall annual cost.
Contributors to the cost include premiums, deductibles co-payments, and any costs you will need to pay during the coverage gap. This "gap" is the amount of prescription costs that are paid by you once maximum benefit amount for the year has been used.
There are supplement plans available that help pay for drugs during this gap. They may focus on generic drugs or pay for brand names. Each Medicare Part D plan has a list of drugs that are covered. It tells you how much you will pay for each drug based on the "tier" that it is in, what the co-pay will be and if there are restrictions on your ability to get the drug.
Medications that are on lower tiers cost less than higher tier options. All prescriptions that you need may not be in one plan, so make sure to pick the one that covers the majority of them.