Medicare Supplement Part D plans are the section of the Medicare program that helps Medicare subscribers pay for their prescription medications. It is recommended that all Medicare participants enroll in a Medicare Supplement Part D plan, even if they do not take any medications. There are several different types of Medicare Part D plans available, including Medicare Advantage, prescription drug-only, and fall-back plans.
Medicare Supplement Part D plans vary by state and plan. To get the best Medigap Part D plan for your needs, you can find a plan comparison tool online, or you can speak with an experienced Medicare Supplement plan advisors who can provided detailed advice pertaining to your specific Medicare and healthcare needs.
Standard Drug Benefit and Medicare Supplement Plan D
Medicare has a standard Plan D drug benefit for all participants. All plans should have a benefit package that is equal to or greater than this standard benefit. This standard benefit includes an initial deductible. Once that initial deductible has been met, Medicare participants pay 25 percent of the cost of the prescription up to the initial coverage limit. For 2009, the initial deductible is $295 and the initial coverage limit is $2,405.
After the initial coverage limits have been met, Medicare participants must pay additional costs for medications out-of-pocket - up to $4,350 - until they become eligible for "catastrophic coverage." Total, participants will be required to pay $6,153.75 out-of-pocket before they are eligible for catastrophic coverage. Once participants are eligible for catastrophic coverage, they will only be required to pay $2.40 for generic drugs and $6.00 for brand-name drugs.
Note: only drugs that are covered by Plan D are included in Medicare's formula for evaluating out-of-pocket subscriber expenses. Subscribers pay up to $75 per month to participate in Medicare Part D.
What to Do if You Have Not Yet Enrolled in a Medicare Supplement Plan:
If you are a Medicare participant and have not yet enrolled in a Medicare Supplement Part D plan, you can still get coverage. When a Medicare participant opts not to enroll in a Part D plan during their first enrollment period, but decides later to enroll in the plan, the participant may be assessed a one percent monthly increase to their Part D premium.
The open enrollment period for Medicare Supplement Part D plans is between November 15 and December 31 of each year. Individuals first become eligible for Medicare on their 65th birthday.
Could a Medicare Advantage Plan be a Good Alternative for You?
Many Medicare participants are enrolled in Medicare Advantage plans. Medicare Advantage plans are offered through private insurers, but generally cover the same healthcare needs as traditional Medicare plans. When a private insurance company provides the Medicare Advantage plan, the private insurance company assumes the costs of a participants' healthcare needs, lessening the burden of the government to pay the healthcare expenses of a participating enrollee.
In order to have a Medicare Advantage plan, subscribers need to be enrolled in both the Medicare Part A and Medicare Part B plans. Medicare Advantage plans vary from insurer to insurer, meaning that these plans come at different prices and with different advantages. However, many Medicare Advantage plans offer coverage for prescription drugs.
By
Wiley Long - President,
MedigapAdvisors.com - The nation's leading independent agency specializing in
Medicare Supplement Plans. We invite you to learn more about how our MediGap advisors can help you get the best healthcare plan for all of your needs.
