Prescription costs and coverage is a huge concern for many people. As you approach Medicare eligibility, it’s important to understand your drug coverage options so that you can choose the best plan for your needs.
What is a Prescription Deductible?
A deductible is a predetermined amount of money you pay out of pocket before your insurance will pay for covered services and products. Deductibles are a form of cost-sharing. For 2020 the Medicare Part D standard deductible is $435. Dependent on your prescription drug coverage, your deductible may be less than the standard but will not exceed $435. For example, if your deductible is $435, you first need to pay $435 out of pocket before your insurance begins to pay for a portion of costs. This does not necessarily mean that you pay the $435 up front right away, it all depends on the full cost of your prescribed medications. Plans that provide prescription drug coverage are on an annual contract, therefore a deductible typically presents itself to individuals in the beginning of the year, or at the time a higher costing medication is picked up.
Is Drug Coverage Included with Original Medicare?
When becoming eligible for Original Medicare, Original Medicare includes Part A (hospital) and Part B (medical). It does not include Part D (prescription drug coverage) You’ll need to purchase a Medicare Part D plan for prescription drug coverage. Medicare Part D is a prescription drug plan (PDP) in which you buy from a private insurance company that has a contract with Medicare.
You can also enroll in a Medicare Advantage Plan which most of the time includes drug coverage. Drug coverage will depend on your specific plan. Whether or not prescription costs are counted toward your deductible will depend on your specific plan as well.
What is My Prescription Deductible with Medicare?
Each plan is slightly different, there’s no universal standard for costs. However, each plan has a standard that is set by Medicare that plans must follow. Deductibles will vary between prescription drug plans. Some plans have no deductible at all. For clarification on your prescription deductible contact our customer service team today.
How Can I Sign Up for Medicare Part D?
To sign up for Medicare Part D, you must either enroll in Original Medicare at the same time or be already enrolled in Medicare. You can then sign up for Medicare Part D during open enrollment. Our team of experienced licensed agents are available to assist you in determining what plan is most suitable for your individual needs.
When shopping for Medicare Part D plans, you should consider the following:
- The frequency of prescription medication you currently take
- The amount of prescription medication you currently take
- The cost of prescription medication without insurance you currently take
For a more detailed breakdown on Medicare Part D and other considerations, please visit Medicare.gov’s page on drug plans. If you need some help navigating Medicare’s website or are unsure what plan is best for you, contact us today to set up an appointment to go over your options.