Why the costs of Medicare Part D plans vary widely

Why the costs of Medicare Part D plans vary widely

When it comes to enrolling in a Medicare Plan, there are certain gaps you should fill. Basically, certain gaps in the general Medicare coverage were filled in 2003 by the American Congress. Perhaps the biggest gap that was filled was the cost of prescription medication. This gap led Congress to create Medicare Part D. Medicare Part D is the Medicare Plan that covers prescription drugs and provides very low-cost plans. If you opt not to enroll in the Medicare Part D when you are initially eligible, chances are you will pay a small penalty when you later decide to sign up for the plan.  The only exception to paying the penalty is in a situation where you have had creditable prescription drug coverage from a different source.

Medicare Part D plans are not the same as Original Medicare and are often included in Medicare Advantage plans. Their costs vary widely since each plan can have completely different co-pays for the same prescription drug. A good financial decision for you would be to reconsider or review your Medicare coverage every year, especially if you drug needs and preferences have changed. It is estimated that Medicare Part D premiums will decline and average around $33 per month. So its good to check annually with a licensed advisor to determine if you're getting the best coverage at the lowest price.

There are also many others costs that you will have to address under Medicare. For instance, Medicare Part A typically covers 100% of the initial 60 days of hospital stays but only after you meet a $1340 deductible. For an enrollee in the Original Medicare Plan, the enrollee will have to cover this deductible for each benefit period they have. A benefit period ends when you haven't received any hospital or skilled nursing care for 60 days in a row. That means you could potentially have multiple benefit periods in a year and have to pay the $1340 hospital deductible each time. Another huge expense is for Medicare Part B, under the Original Medicare their is a 20% co-pay for doctor visits and other outpatient services like labs, x-rays, urgent care and medical equipment. If some expenses are not covered in your Original Medicare, consider enrolling in Medicare Supplement plan because the plan will cover deductibles and co-pays. A licensed advisor can help you select the right Medicare Supplemental insurance plan.

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