Medicare Part D is the portion of Medicare that provides prescription coverage. Part D went into effect January 1, 2006. This new program for Medicare patients is a little different from the way other health services are obtained with Medicare. Medicare Part D drug coverage no longer utilizes the Medicare-approved drug discount cards that were given from 2004-2005. Rather, the new program is permanent and offers insurance protection for drug costs now and in the future instead of just discounts.
Some of the new changes in Medicare Part D include:
Now, every person currently on Medicare can get prescription drug coverage, regardless of health reasons or income levels.
The program is voluntary, meaning it is not automatic. The Medicare recipient may opt not to sign up for it if they already have coverage from somewhere else. In addition, the person must sign up for it if they do want it.
Now, Medicare does not have a single drug plan. Medicare has approved a number of different drug coverage programs the person must enroll with.
For those whose incomes qualify, Medicare will cover the majority of drug costs.
A Medicare-approved plan that covers up to 95% of prescription drug costs above a certain amount is available for those whose costs are high.
How Do I Enroll In Medicare Part D?
Medicare Part D utilizes private insurance plans you can choose from. These plans vary, so it’s important to determine your needs, do a little research, and then decide from there which plan is best for you.
In order to get Medicare drug coverage, you will have to enroll in one of the private insurance plans approved by Medicare. There are a variety of plans available, and each one differs in costs and what sorts of coverage they offer. However, each program or package follows a set of standards set by Medicare.
When deciding on a plan, it’s important to take into account all of the prescriptions you are currently taking, as each plan varies in what it will actually cover. You must remain enrolled in your plan for at least a year, so deciding on the right one is crucial if you’re going to save money. You can get lists and details of the various plans from the Medicare website or by calling 1-800-MEDICARE.
Medicare Part D is available to anyone who is currently enrolled in Medicare, regardless of income level.
Costs
For the new Medicare drug plan, you will be required to pay both a monthly premium as well as an annual deductible.
The monthly premium is the amount you pay each month to a Medicare drug plan sponsor. The actual amount you end up paying just depends on which plan you choose, but on average, the premiums are about $32. The amount you spend on your premium will vary though and can be as low as less than $15 a month.
You have options in how you choose to pay the premium; you can either have it deducted directly from your Social Security check each month or pay it to your Medicare drug plan sponsor yourself.
The annual deductible is the amount you will spend on your prescriptions, starting at the beginning of the calendar year, before your Medicare coverage begins paying for you. Currently, the maximum amount for the deductible is $250, meaning you will never pay more than $250. Many plans are much lower.