Choosing a Medicare Plan that Suits Your Prescription Drug Needs

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Each year, millions of Americans enroll in Medicare, the federally funded health insurance plan for seniors 65 and older and younger people with certain disabilities.  Medicare Part D is the prescription drug coverage under traditional Medicare.  However, consumers can also purchase Medicare Part D Plans, offered by private insurance companies.  Here are some things to keep in mind when choosing a Medicare Part D Plan:

Premium Costs

If you decide to opt out of traditional Medicare and purchase a Medicare Advantage Plan through a private insurance company, the premium for a drug benefit might be built into the monthly premiums.  If you chose to shop for a Medicare Advantage Plan, you will want to make sure to ask about any additional costs to include drug coverage.

Co-pays

Each Medicare Part D Plan classifies prescription drugs into tiers.  Each tier will have its own co-pay.  In additional to shopping for a monthly premium, you should carefully compare Medicare Part D Plans based on what prescription drugs you require and how much your co-pays will be on a monthly basis.  Some companies offer online tools for cost comparisons but you may also call an insurance agent for quotes of these costs.    

Coverage Gap

Some plans will have a “doughnut hole” or coverage gap, depending on your drug costs.  The coverage gap is part of most Medicare Part D plans and starts once you reach a certain amount of total drug costs and ends when you reach a certain amount of out-of-pocket costs.  Some Medicare Part D Plans offer coverage gap alerts where the plan sends you a letter, email or makes a phone call to you when you get close to reaching your gap amount and can offer money saving tips to delay entry into it. Some Medicare Part D Plans provide money-saving options such as a lower co-payment for a supply of generic drugs received by mail during the coverage gap period.

Timing to Enroll in a Plan 

There are certain times you can sign up for a Medicare Advantage Plan or a Medicare Part D plan, offered by private insurance companies.  You may enroll in a Medicare Plan during your initial enrollment period, which is the seven month period that starts three months after the month you qualify for Medicare (for most people, when they turn 65) and ends three month after.  You can also enroll, cancel or change plans from October 15 to December 7 of each year.  To find the best options for you, you can research Medicare Part D plans online and get online quotes and drug cost comparisons. 

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