Medicare Part D
Medicare Part D covers prescription drugs. Medicare Part D is a federal program that began in 2006. It provides Medicare beneficiaries with access to retail prescription drugs at affordable copays. Prior to 2006, people on Medicare had to pay high retail prices for their medications. This program helps seniors pay for much needed medications.
Medicare Part D is coverage for retail prescription drugs that you obtain from a retail pharmacy. This voluntary program allows you to access medications at a more affordable rate and helps provide coverage against catastrophic drug costs.
You do not enroll in Medicare Part D via Social Security. Instead, you will choose a Medicare Part D plan offered by a private insurance company in your state.
Medicare Part D Cost
How much is Medicare Part D?
Medicare Part D costs include several things.
- First there is a monthly premium that you will pay for the insurance itself.
- Next, there is cost-sharing that you will pay at the pharmacy for your medications. That cost-sharing may include some deductible spending if your Part D plan has a deductible.
- Copay Tiers- depending on the cost of the medication, it will fall into a tiered classification. Within those tiers you will pay a different amount for the medication. Some of the Tier 0 or Tier 1 medications will have a $0 copay.
Medicare Part D Monthly Premiums
The monthly premiums for Part D drug plans vary by state and insurance company depending on the specific plan that you choose.
There are many Medicare Part D plans to choose from. Every insurance company sets its own formulary (list) of medications that are covered by the plan. What medications are covered and what tier they fall in does determine what the cost of that monthly premium will be.
It’s important to choose the plan with a formulary that offers the medications you need. Don’t always look at the cheapest plan. If you just enroll in the cheapest plan without checking the plan’s formulary, you may later learn that the plan does not cover one of your medications. It may also benefit you to pay a slightly higher monthly premium to find a plan that covers your medication at a lower copay.
Some people with higher incomes may have to pay more for their Medicare Part D plan. If you earned more than $88,000 filing individually or $176,000 filing jointly, then Medicare will also require you to pay extra for your Part D coverage. This is called the Income Monthly Adjusted Amount.Some people with higher incomes may have to pay more for their Medicare Part D plan. If you earned more than $88,000 filing individually or $176,000 filing jointly, then Medicare will also require you to pay extra for your Part D coverage. This is called the Income Monthly Adjusted Amount.
