About Medicare Part D
What is Medicare Part D and how does it work?
Medicare Part D is an insurance plan under the US federal government that covers prescription drugs and medication. It is provided by private medical insurance companies only and it can either be used to supplement Original Medicare or as a standalone.
To receive Medicare Part D benefits, you have to pay monthly premiums to your Medicare Insurance services provider who will pay part of your prescription drug expenses while you cover a certain percentage of the total cost. For you to be eligible for Medicare Part D coverage, you need to enroll in Medicare Part A and Part B.
Your Medicare Part D Prescription Coverage – Who Pays What?
Medicare prescription coverage comes in four stages.
- Annual Deductible
A deductible is the amount of money you should spend on your prescription medication before you move on to Initial Coverage where Medicare can take over.
While deductibles vary with each beneficiary or waived off completely for some, the highest deductible amount you can pay as of 2021 according to the US government is $445.
- Initial Coverage
Initial Coverage enables you to pay a fraction of your prescription medication costs based on your Medicare plan. The prescription drugs you get are tiered based on their type, brand names, and other specialized criteria.
As of 2021, the maximum Initial Coverage costs you can pay before you move on to the Coverage Gap is $4,130.
- Coverage Gap
The coverage gap allows you to get medication at better discount rates in comparison to Initial Coverage until you have spent a total of $6,550 out of your pocket as of 2021 as per the United States Medicare regulations.
- Catastrophic Coverage
When you spend more than the maximum limit that the coverage gap has, your Medicare plan will pay for 95% of your medical expenses for the rest of the year!
Getting the best Medicare Part D Coverage
To find the best Medicare Prescription Drug plan, a Your Life Agency Medicare Insurance Agent can help you compare Medicare Part D plans and choose one that works best for you.
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