Medicare Part D Prescription Drug Plans
Medicare Part D adds prescription drug coverage to Medicare or Medicare Advantage plans. Prescription drug plans are offered by private insurance companies that are approved by Medicare. Each plan can vary in cost and drugs covered. HCM Holdings can help you navigate these drug coverage plans and decide which one is best for you.
The 4 Types of Medicare
Part D
1
You will pay the full cost of your prescriptions until they add up to meet your plan's deductible. Some plans have a $0 deductible
4
After spending $7,400 out of pocket on drugs, you receive catastrophic coverage. You will pay a low coinsurance or copayment amount that is set by Medicare for all of your covered prescription drugs. The plan and the government will pay for about 95% of the cost. This stage lasts until the end of the year.
2
This begins once you meet your deductible for the year. Your plan will pay for a portion of the prescription drugs as long as it is covered by your plan's formulary, or list of covered drugs. You are responsible for paying the other portion, which is either a set dollar amount, or copayment, or percentage of the cost, or coinsurance. This ends once you and your plan spend on covered drugs adds up to the initial coverage limit set by Medicare. Your Monthly premiums do not count toward this limit.
3
This begins once you and your plan reach your initial coverage limit for the year. Not everyone reaches this stage. If you do not enter this stage, you will pay 25% of the plan's cost for brand name drugs and 25% of the cost for generic drugs until your out of pocket costs on drugs reaches $7,400.
Annual Deductible
Initial Coverage
Coverage Gap
Catastrophic Coverage