Compare Medicare Part D Plans

Compare Medicare Part D plans to begin receiving prescription drug benefits through Medicare. Part D helps defray the high costs of prescription drugs. Seniors are eligible for a prescription drug plan if they are entitled to benefits under Medicare Parts A or B. There are two types of plans that offer Part D benefits: a Prescription Drug Plan (PDP) or Medical Advantage Plan.

Private insurance companies offer competitive rates for Part D beneficiaries. Choosing a plan requires seniors to thoughtfully compare Medicare Part D plans to determine which provider offers the best plan to suit their needs. There is no pre-screening requirement for enrollment, so anyone eligible or enrolled in Parts A or B is eligible for Part D benefits.

Seniors can enroll in a drug plan within three months of turning 65. There is no obligation to join immediately, but there may be a penalty for joining after the 65th birthday window closes. People already covered by a drug plan through Medicaid, Medicare Advantage or other program may have the penalty waived. Penalties are based on a number of variables, so people approaching 65 should compare Medicare Part D drug plans now to take a proactive stance on their prescription drug coverage.

Each plan has a formulary, a list of the drugs it covers. The formulary lists the name of the drug, how much you would pay for that drug and any restrictions on your ability to purchase that drug. Compare Medicare Part D plans to find one that includes all of your current prescriptions. If one plan does not include all the drugs you take, you can apply for an exception, but with so many Medicare coverage costs and plans to compare, there should be one to perfectly suit your needs.

The same drugs may appear on different co-pay tiers from plan to plan. The co-pay is how much your are required to pay out of pocket. Ideally, the majority of your drugs would fall on the lower tiers. This reduces the cost to you, both out-of-pocket and premium. Compare Medicare Part D plans to be sure you aren't paying too much.

Part D beneficiaries must also decide what type of plan to enroll in. PDP's are free-standing insurance policies that only cover prescription drugs. A PDP is best suited to people covered by Parts A or B or a Medicare Cost Plan or Private-Fee-for-Service plan that does not cover prescription drugs. These plans provide for hospital and medical bills, and the additional drug plan covers the costs of prescriptions.

The other type of plan is a Medicare Advantage plan with prescription drug coverage (MA-PD). These cover both medical expenses and prescription drugs. Beneficiaries of these plans are given a list of in-network providers to visit, but they may visit out-of-network healthcare providers for a higher cost.

When customers compare Medicare Part D plans, there are four variables to consider: first, compare the drugs covered by each plan. Most include common drugs, and they also exclude certain drugs across the board. Next, compare the eligible pharmacies; people with a preferred pharmacy will want to choose a plan that cooperates with that business. Compare how much the plan costs, including premiums and deductibles, and where the drugs fall on the co-pay tiers. Most importantly, decide whether a PDP or MA-PD suits your healthcare needs.

When you narrow down your plan options based on those four variables, compare Medicare Part D plans side-by-side. The first item to compare is the total annual drug cost. This includes the monthly premium and co-pay for each of the drugs. All things being equal, the plan with lowest annual cost is your best option.

Also compare Medicare Part D plans to find out if there are limits to how great a supply you can buy at a time. A plan may also require you to try a less expensive version of a drug before it allows you to buy the brand you prefer. Some may require you to have new prescription drugs approved by the insurance provider before they will be covered. Choose the plan with the fewest restrictions.

Open enrollment for prescription drug plans runs from November 15 to December 31 of each year. Once a customer chooses a plan, they are locked in until the following year's enrollment period, so it is vital to compare Medicare Part D plans carefully. Getting stuck with an inadequate plan can lead to higher out-of-pocket drug costs for you.

There are many variables to consider when choosing from a seemingly endless sea of options. Compare Medicare Part D plans thoughtfully to be sure you are getting the coverage you need. Seniors spend considerably more on prescription drugs than any other group in the United States, and government programs to subsidize those costs can save you hundreds, even thousands, of dollars each year.

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