Medicare Part D Prescription Drug Plan
The Medicare Part D prescription drug program began in year 2006. Coverage is offered through private insurance companies and not directly through Medicare. In recent years, there have been aproximately 30 plans available to Medicare beneficiaries in the State of Arizona. These plans range in monthly price from aproximately $8.00 to $105.00. In very general terms, having the correct plan will save a person on average anywhere from 50% to 60% of their total annual drug costs, including paying to be enrolled in one of the plans.
There are at least two good reasons to enroll in a Medicare Part D prescription drug plan. First, there is a penalty for not enrolling when you first become eligible for Medicare. The penalty is 1% of the national average cost of a plan for every month that an eligible Medicare beneficiary is not enrolled in a plan. For example, if a Medicare beneficiary becomes eligible for Medicare on January 1, 2023 but waits a full year to enroll, they are subject to a 12% penalty. The penalty is imposed on the Medicare beneficiary when and if they do finally enroll in a plan.
The other good reason to enroll in a drug plan is that you can save a lot of money. It is important though to pick the right plan. Although all of the plans have to provide what is called the Part D standard benefit or the actuarial equivalent of it, specific drug prices vary significantly from plan to plan. In other words, a plan that might work well for your neighbor who takes three specific prescription medications might not work very well for you who takes two different prescriptions. Therefore, it can be very important for you to have an insurance professional research all the plans for you based on your specific prescriptions in order to see which plan works best for you. As an independent insurance broker and advisor, we can help you navigate through the maze of information associated with Medicare Part D prescription drug plans. We provide this service at no cost to you!