What does Medicare Part D cover? The short answer is Medicare Part D typically covers a portion of prescription drug costs.
So, how much does Medicare Part D cost?
The current average monthly premium for Medicare Part D is about $33. This rate will vary depending on the plan you choose and where you live.
How Much Are Deductibles Under Medicare Part D?
Part D deductible plans range from $0 to $415. Do your homework to factor yearly costs with the drugs that you will need to take before selecting your premium plan.
How Much Are Copayments and Coinsurance Under Medicare Part D?
A coinsurance is a percentage of the price of your prescription. A copayment is a fixed dollar amount for your prescription.
You will typically have to pay coinsurance on drugs in higher tiers, with lower tier drugs sticking with a copay pricing model.
Keep in mind, drug pricing will be designed to encourage you to select lower cost drugs.
Will Medicare Part D Stop Paying For My Drug Costs?
Unfortunately, yes. Called the coverage gap or donut hole, you will be responsible for 25% of all your drug costs when you reach a limit of about $4,000 in yearly drug costs.
However, once you’ve paid over $6,350 for out-of-pocket drugs costs, you leave the gap/donut hole coverage and enter catastrophic coverage.
During this period you will pay significantly lower copayments or coinsurance costs.
Wondering what Medicare Part C costs? Find out here.
Also, get information about Medigap coverage and costs.