How Medicare Part D works:
- Medicare Part D is an optional program that provides Insurance coverage to help you pay for prescription drug costs.
- Offered by private Insurance companies and are based on guidelines provided each year by the Centers for the Medicare and Medicaid (CMS)
- Plans are based on the guidelines each year that are governed by the Centers for Medicare and Medicaid (CMS)
- Plans are similar but may vary in premiums, co-pays and formularies.
- Can be purchased as a “stand alone” or through a Medicare Advantage plan that covers both Medical services and prescription drugs.
- To be eligible, you must have Medicare A and or B.
- A Part D late penalty could be added to your Part D premium if at any time after your initial enrollment period is over that 63 or more days pass when you did not have Part D or other creditable prescription coverage. If you have a limited income and qualify for Extra Help you don’t pay a late enrollment penalty.
- In any one year, the Part D drug benefit gives you the initial coverage up to a certain level ($3,820.00 for 2019). Once you reach that level there’s a coverage gap known as the (doughnut hole) before benefits kick in again. Once you are out of the gap and reach the true out of pocket limit ($5,100.00 for 2019) The Catastrophic drug coverage kicks in and you will pay either five percent, $3.40 or $8.50 for your prescriptions, whichever is higher. (Note some PDP plans do have deductibles before the initial coverage limit)
RLG Financial Concepts offers Prescription Drug Plans for the following carriers:
AARP Medicare RX Preferred/Saver Plus
AARP Medicare RX Walgreens
Silver Script Rx
United Health Care Rx