How Do I Choose A Medicare Part D Policy That Works Best For Me?

How Do I Choose A Medicare Part D Policy That Works Best For Me?

Part D of Medicare is a prescription drug offered by private insurance firms. You will get Medicare Part D insurance through a separate policy that works with Original Medicare plan (Part A and B) or with a Medicare Advantage policy.

This article focuses on choosing a separate Medicare Part D policy. The two most important factors to consider when choosing the best Medicare Part D policy are the cost of the policy and the benefit of the policy.

Finding the best Medicare Part D policy for the cost

When choosing a Medicare Part D, the costs to consider are the premiums, deductibles and co payments.

A premium is the amount you pay monthly to receive the policy. The average base premium for Medicare Part D in 2019 is $ 32.50, according to the Centers for Medicare and Medicaid Services. This amount will be slightly lower than that of 2018. However, depending on the insurance company the policy offers, the area in which the policy is offered and the specific insurance of the policy, your premium may be much less than $ 32.50 (e.g. $ 19.70). Sometimes, it could be much higher (e.g. $ 44.20). Now, your Medicare Part D premium may also be affected by your income. Generally, people with higher incomes (one single income of more than $ 85,000 or an income of more than $ 170,000) will pay more to insure Medicare Part D.

A deductible is the amount you pay for your prescription drugs prior to when your policy begins to pay. Medicare restricts what that deductible can be. In 2018, the maximum deductible was $ 405. There are no deductibles for some Medicare Part D policies.

An additional payment is a dollar amount that you pay each time you take a prescription drug. Co insurance is a percentage you pay when you fill a prescription. The co pay and coinsurance amounts vary depending on the price level of the drugs. For example, you could pay a $ 4 charge for a preferred tier 1 generic drug and 39% co insurance for a tier 4 non-preferred tier.

Consider all costs before deciding what the best Medicare Part D policy is for you. For example, a policy might have a low premium and a $ 0 deductible, but a high co insurance/ co payment. Another policy may have a higher premium and a deductible of $405, but lower co insurance/co payment.

To find the best Medicare Part D policy for insurance

Several Medicare Part D policies can refer to prescription medications. However, Medicare Part D policies must include all or “almost all” prescription drugs that:

  • antidepressants
  • Immunosuppressant to prevent the rejection of organ transplants.
  • anticonvulsants
  • antipsychotics
  • antineoplastic
  • antiretroviral

Medicare Part D requires that these classes be insured by prescription drugs to protect “vulnerable population” who take them. To find out if your prescription is insured by your policy, request the formula for the policy. A form contains a list of insured prescription medications.