[dropcap]H[/dropcap]ow 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 initial coverage up to a certain level ($3,700.00 for 2017). Once you reach that level there’s 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 ($4,950.00 for 2017) The Catastrophic drug coverage kicks in and you will pay either five percent, $3.30 or $8.25 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:
First Health Rx
United Health Care Rx
Silver Script Rx