Medicare Part D 2017
Medicare Part D is Prescription Drug Coverage.
The plans are not offered by Medicare, but by private insurance companies that must meet specific standards.
To qualify, you must participate in Part A and Part B.
Offered by Outside Insurance Companies
Medicare itself does not offer Part D policies. The coverage is provided by Medicare-approved insurance companies. Each company has the right to set prices, premiums, deductibles, co-pays, and decide which medications they cover. The policies must conform to certain standards, but the coverage can vary widely.
How to Find the Right Plan
Medicare provides a Plan Finder on its website that will assist you in finding a company in your area that covers the medications you need. You enter your prescription name, dosage, and frequency. You will then get a list of companies and the cost of the premium, deductible, and co-pay required.
The cost of Part D will vary depending on your past income and how much coverage you decide to purchase. There are plans as low as $12 per month and up to $300 per month. The maximum deductible is $360. Once your deductible is met, plans pay 75% of the cost of your prescription drugs until you reach the donut hole.
The Donut Hole
- Once you and your insurance company have paid a combined amount of $3,700 for covered drugs during 2017, you enter the donut hole and the percentage of your coverage decreases.
- Once in the donut hole, your coverage decreases until you reach an out-of-pocket amount of $4,950.
- Once you reach $4,950, you enter the catastrophic coverage phase. Here the amount you pay goes down to a small percentage, about 6% – or about a $6.60 co-pay – for your prescriptions.
Medicare Prescription Drug Coverage is a great asset for senior citizens who so often have need for many medications to ensure they maintain their health and quality of life.
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