Medicare D For Morons
Open Enrollment Cost Saving Tips
Medicare D open enrollment is upon us once again. ‘Tis the season for those who are eligible to choose a drug plan that fits their needs. This can be a daunting task for individuals who are looking to get coverage for prescription medications.
Seniors and other eligible Medicare D beneficiaries can expect drug costs to continue to rise, due to the fact that Medicare is prohibited from negotiating drug prices like an insurance company would negotiate a hospital bill. These increases fuel the need to raise premiums, deductibles and co-payments.
In 2010, the initial coverage stage increases from $2,700 to $2,850. After exhausting this stage, the individual will move into the gap stage, commonly referred to as the "doughnut hole." The insured will pay 100% of the cost of the medication until another $4550 is reached to move into the catastrophic stage where co-payments are dramatically reduced and in some cases waived completely.
Ways to Save Money on Medicare D
Many companies offer a Medicare D plan, but not all plans fit all needs. For instance, if a person takes very few generic medications, it may not be a good idea to look into a plan with a high monthly premium. A plan with a higher deductible and a low monthly premium may be a better way to go.
If aging into the program or just up for re-enrollment, consider using a pharmacy that has a low-cost generic program. Since it is the ingredient cost of the medication that goes toward using the initial $2,850 allotted, an individual can reach the gap in coverage at a quicker pace if using the plan to cover costs for all medications. Rather, save the Medicare D plan for the more expensive brand name drugs and pay out of pocket for lower costing generic medications.
Many companies that offer a Medicare D plan have mail order as part of the plan design. It is more cost effective to purchase a bulk supply of medication than to purchase a smaller supply at a retail pharmacy.
The Future of Medicare D
Although law makers are looking to revamp the bill, people on a fixed income are finding it difficult to support their prescription drug costs. In the meantime, it is important that eligible subscribers search for the plan that they will benefit from the most.
Despite obvious flaws, the future of Medicare D prescription drug plan looks promising. Amendments are under way to completely close the gap in coverage by 2019. In the near future, plans to help subsidize the cost of medication by 50% during the gap are being looked at for the benefit years of 2010 and 2011.
President Obama states: "Our goal -- our imperative -- is to reduce the punishing inflation in health care costs while improving patient care. And to do that we're going to have to work together to root out waste and inefficiencies that may pad the bottom line of the insurance industry, but add nothing to the health of our nation. To that end, the pharmaceutical industry has committed to reduce its draw on the health care system by $80 billion over the next 10 years as part of overall health care reform."
Eligible Medicare D subscribers will find it beneficial to research which plan best suits their needs. Medicare.gov offers impartial and complete information regarding all companies that offer a plan for 2010.
Sources:
Whitehouse.gov
Drug prices on the rise.
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