Learn how Medicare Plan D can help with your daily prescription medication costs. How to know what your out of pocket costs for medications will be.
There are four major Medicare plans. Part A is for hospitalization; Part B is for medical visits and treatments; Part C is a plan that covers all of Parts A, B, and D; and Part D is for prescription drugs. Part D is covered by private insurance companies. To enroll in Part D, an individual must already be participating in Parts A and B. The purpose of Part D is to make necessary medications affordable for people without drug coverage on any other policy and for those with limited resources.
The prescription drug program is provided by individual insurance companies. There is a monthly premium paid directly to the insurance company. Depending on a person’s level of income, there may be an additional monthly fee imposed by the Medicare program and deducted from the monthly Social Security payment. The Medicare Plan D fee is based on either individual or joint family income, with a current maximum additional fee for individuals with income of $214,000 or more and for couples with income of $428,000 or more. Each enrollee will need to select an insurance plan and a company that will cover his or her part D prescription needs.
Which drugs are covered and how much they will cost is determined by the insurance company. It is important to research which Medicare Plan D insurance companies cover those prescription medications that an individual needs to have. Not all drugs are covered by all insurance companies. Some insurance companies may impose a small co-payment. Medicare related drug program payments are far less expensive than general prescription drug plans and provide a greater savings for those currently without any prescription drug coverage.
Depending on the insurance company’s guidelines for coverage, a local pharmacy may not be included in someone’s plan. Some insurance companies may require the use of a mail order service or the use of a certain chain pharmacy that is available across the country. Read more detailed information at www.medicare.gov/cost .