Medicare Part D Benefits

To get the most out of your Medicare coverage, it’s important to understand what the different parts of the Medicare program provide and what the cost is to you. The Medicare program consists of four parts: Part A – Hospital Insurance, Part B – Medical Insurance, Part C-Medicare Advantage, and Part D – Prescription Drug Coverage.

Let’s talk about Medicare Part D – Prescription Drug Coverage. Medicare Part D helps you cover the rising cost of prescription drugs after age 65. Premiums may vary depending on what plan you choose and may change each year. You may also have to pay an extra amount each month based on your income, if your adjusted individual gross income from the two years prior exceeds preset earnings limits for filing single or if married filing jointly. Social Security will tell you if you must pay this extra amount to Medicare – not to your plan – and the amount will be adjusted each year based on your most recent IRS return.

You might pay a penalty if you don’t join a drug plan when you first join Medicare and go 63 days without coverage similar in value to Part D coverage. Most plans do charge a deductible. The amount that you pay out-of-pocket, before the plan begins to pay, is capped annually starting in 2025. The annual limit will be adjusted for inflation each year. This cap does not apply to out-of-pocket spending on Part B drugs, prescribed in an outpatient setting like a doctor’s office. Your actual costs will also depend on the drugs you take, what drugs the plan covers and the pharmacy.

As you can see, there’s a lot to know about Medicare, so why not get some help with your Medicare plan? Let us help you with your important Medicare decisions. Call to speak to a licensed insurance agent.