Medicare Part D is a prescription drug program. As many people do, you should ensure you enroll in a Medicare Part D program if you take prescription medications. These plans are designed to reduce the cost of prescription drugs. If you are eligible for Medicare Part A and B, enroll in Medicare Part D at the same time, or you will pay more if you choose to enroll in a program later.
Medicare Part D – The Formulary
Every company that offers Medicare Part D issues a “formulary” or a list of the prescription drugs the plan covers. The formulary will vary based on the plan type and the insurance carrier. To enroll in the right plan, you must review the formulary to determine which of the medications you take are covered.
How Much Does Medicare Part D Cost?
To put Medicare Part D in place, you will need to choose a plan that suits your budget, as you will pay a monthly premium. The premiums vary from plan to plan. You will also share the cost of the medications until you reach the limit for the plan's out-of-pocket costs. In most plans, after you reach the policy limit, you must pay only 25 percent of the cost of medications until you reach the next level. Once you have passed the out-of-pocket costs at that level, your copay or coinsurance costs will reduce even further. You can opt to have your Part D premiums deducted from your Social Security benefits every month.
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