Understanding Your Medicare Part D Premium

Your Medicare Part D premium will buy you discounted prices at your pharmacy. Part D is a stand-alone policy that comes from private companies. It is not a government run program. Everyone who is signed up for Medicare can get this coverage. There are no restrictions as far as income, health or what medications are needed. These policies will cover both generic and name brand drugs. Even if you do not currently need them, these policies protect people from high drug costs now or in the unexpected future.

Your first Medicare Part D premium will become due when you sign up. You can do this when you enroll in Medicare. You are required to be enrolled in either Part A or Part B. If you are enrolled in Part C, your drug cost coverage is likely already part of your policy. Check with your insurance provider to see what benefits they provide.

You become eligible to sign up for Medicare from three months prior to your 65th birthday to three months after that date. If you do not sign up during that window, you may be paying a penalty for your supplement premium. Each year, clients can decide to switch their Part D coverage during the last six weeks of the year.

Your Medicare Part D premium will be due monthly in most plans. The amount will depend on what type of plan you are enrolled in. You will also have a yearly deductible you will have to cover as well. For each prescription, you will be responsible for a co-payment or coinsurance piece. The amount out of pocket for each medication will depend on what plan you are enrolled in and what drugs you require. If you find the out of pocket expenses to be too high, you may be able to find some help with subsidies

Your Medicare Part D premium will not cover the donut hole. There is a large gap between what Part D covers and when catastrophic coverage begins. Under most policies, you are responsible for over $4000 of out of pocket expenses before the catastrophic coverage kicks in. That can devastate someone on a fixed income. There are programs available to help cover this gap for lower income seniors. Some qualify for partial or full coverage of medications in this gap. But, the requirements for this coverage vary from state to state. Contact a good insurance agent to get more information.