Medicare Part D can save you money if you need prescription medications that are not covered under Medicare Part A or B. Medicare Part D assists seniors and other adults who qualify for Medicare with the cost of therapeutic, medically necessary drugs that are prescribed by your doctor. If you do not need many medications or your current prescriptions are covered under Part A or B, buying a Part D prescription plan may not make a significant difference in the cost of your health care.
Even if you don't currently require any prescription medications, you may save money in the future if you add a Part D prescription drug plan to your original Medicare or Medicare Advantage plan. Seniors who do not enroll in a Part D plan during their open enrollment may be charged late enrollment penalties if they choose to enroll later. In the future, if you were to need prescription medications, you would have to pay more for Part D if you did not sign up for a plan during your open enrollment period.
Medicare Part D Benefits
In order to stay fit, healthy and independent, seniors need comprehensive medical care, including access to prescription medications. However, because many of the common medications that older adults take are not covered by Medicare, seniors may end up paying for these prescriptions out of pocket. More often, seniors decide to go without certain prescriptions because they can't afford the high prices.
Medicare Part D Prescription Drug Plans, or PDPs, reduce the cost of prescription medications by paying for a portion of their cost. When you buy a PDP, you may be charged a monthly premium, a deductible and a co-payment for your medications. Because PDPs are managed by private insurance companies that are authorized by Medicare, the cost of coverage and the range of covered medications varies from one provider to another. Comparing quotes on Part D policies before you buy will help you find the most competitively priced policy.
To ensure that you will save money with a Medicare Part D policy, review its list of covered drugs, or formulary, before you buy a policy. Any drugs not listed on the formulary will not be covered, except with special authorization. Vitamin and mineral supplements, cosmetic medications, fertility drugs, over-the-counter cold remedies and medications that are not considered medically necessary are not covered under Part D. If you use primarily over-the-counter supplements and you rarely have prescriptions to fill, Medicare Part D may not save you much money.
Reducing Your Prescription Costs
A Medicare Part D policy can save you money and give you access to medications that you might not otherwise be able to afford. You can also reduce the cost of coverage by buying generic drugs whenever they are available, rather than paying for brand name medications. Instead of filling your prescriptions from the pharmacy as you need them, arrange to have your prescriptions filled automatically through a mail order service approved by your insurance provider.
If your income falls below a certain level, you may save money by requesting extra help from Social Security. Federal and state programs are available that offer pharmaceutical aid to low-income seniors. These programs can help you afford the cost of Medicare Part D, so that you can benefit from the cost savings that the program offers. Many of the medications that doctors prescribe are far too expensive for most retirees to afford. Medicare Part D can save you money and may improve your quality of life by making prescription medications more affordable.
