Having prescription drug coverage is a great way to save money on your prescriptions, but keep in mind that you will still have out-of-pocket costs with Medicare Part D. But, what are these out-of-pocket costs?
Premiums and Deductibles
Part D premiums are an out-of-pocket cost based on income, as well as the carrier and plan you choose. For many, the higher the income amount, the higher the premium. The premium for Part D is paid in addition to the Part B premium if you’re enrolled in Original Medicare. Suppose you have a Medicare Advantage Plan that offers Part D prescription drug coverage. In that case, the Part D premium will be included with the Medicare Advantage Plan’s premium.
The yearly deductible for Part D as of 2020 is $435. However, some companies may choose to charge a lower deductible or waive it entirely. If it is waived, the premium payment could increase.
Copayments and Coinsurance
After you have paid the deductible for your Part D plan, you could be left with a copayment or coinsurance to pay for your prescriptions.
A copayment is a set amount you will pay for all prescriptions on a specific tier, but you may pay a lower amount for generic drugs than you would for brand-name drugs. There are five different tiers in a Part D plan, Tier 1 usually consisting of the preferred generic medications.
Coinsurance is a percentage of the total cost of a prescription that you pay.
Extra Help Program
If you find yourself struggling with affording prescription drug coverage, consider applying for Extra Help. The Extra Help Program is designed to help those with limited income and resources pay for Medicare Part D’s prescription drug costs. This program can help pay for premiums, deductibles, coinsurance, and copayments.
To see if you qualify, or to apply, contact your local Social Security office.
Cornerstone Senior Advisors Can Help
Medicare Part D is voluntary. However, if you don’t have it, you could pay large amounts for medications that you need in the future, but you should also be aware of the out-of-pocket costs that come with this plan. At Cornerstone Senior Advisors, we specialize in Medicare insurance products. If you need assistance, please give us a call at (316) 260-3331.