How to Choose a Medicare Part D Plan: A Comprehensive Guide
Part D is an optional addition to Original Medicare (Parts A and B) that offers prescription drug coverage. It is provided by private insurance companies approved by Medicare.
Lower Your Medicare Costs
Similarly to gas prices and rent, healthcare costs are rising. In 2022, CMS announced the largest Part B premium increase in the program’s history. Seniors are feeling the pinch as prices sharply increase. Fortunately, there are programs designed to assist with the rising cost of healthcare.
Costly Medicare Mistakes to Avoid Part 2
An election period is a specific time when you can make changes to your insurance plan.
Medicare Advantage and Part D members have two periods each year to review their current coverage and change to a different plan if desired.
Annual Election Period Timeline
Each year Medicare members can make changes to their Medicare Advantage or Part D plans during a period known as the Annual Election Period (AEP).
This election period is for individuals enrolled in a Medicare Advantage or Part D plan. If you have a Medigap (also called a Medicare supplement) plan, AEP is when you can change your Part D plan or switch to a Medicare Advantage plan.
Part D Coverage Gap
The coverage gap is a phase of Medicare Part D plans where the plan member must pay a percentage of the total cost of their medications. Almost all Part D plans have a coverage gap (sometimes called the “donut hole”). However, not everyone will reach the coverage gap.
Part D Standard Benefit Explained
Insurance companies offering Part D plans must cover, at minimum, the standard benefit. Not all Part D plans will include all four phases. For example, some Part D plans don’t have an annual deductible. In addition, some enhanced plans cover the member if they reach the coverage gap phase. Therefore, reviewing your medications with your agent to determine your costs with different Part D plans is essential.
Part D Basics
Medicare Part D is coverage for outpatient prescriptions. Anyone with Medicare can elect to enroll in a Part D plan. All plans must cover many drugs commonly prescribed to people on Medicare.
Let’s look at some important things you need to know before choosing a Part D plan.
Medicare’s Star Rating
Medicare gives each plan a score on a scale of 1 to 5. These scores are based on various performance metrics. Under Medicare’s scoring system, a 3-star plan would be considered average and a 5-star plan would be considered excellent.
When Can You Change Medicare Health Plans?
Most Medicare beneficiaries are aware of the Annual Enrollment Period, the time of the year when many Medicare Advantage and Part D plan members review their coverage and check out different plans. Due to certain circumstances, there may be other times during the year when Medicare members can make a change to their health plan coverage.
Programs to Lower the Cost of Medicare
When talking to my clients, I am often surprised to hear that they did not know about Medicare’s many programs designed to help lower the cost of their health insurance.
Let’s look at some of these programs and how you can apply for them today.