Medicare Part D: Plans and price comparison

By Alston J. Balkcom

There are several steps you should take before choosing a Medicare Part D policy. A Medicare beneficiary is likely to be faced with a myriad of choices, so the first step is to eliminate some of those options from consideration. You will only want to consider policies that serve your local area. You will want a plan that has a low overall cost. You will want to make sure you understand your policy before you enroll.

 

A great free tool you should use

Medicare.gov has made selecting a Medicare Part D policy a lot easier! This government website is full of resources that will make your quest for the best prescription drug plan a lot easier.

 

Rules you must know

It is important to note that you cannot have two prescription drug plans. It is also important to note that enrolling in a prescription drug plan, can in many instances, automatically disenrolls you from your Medicare health plan. This is not the case if you have a Medicare Supplement or Medigap plan. Be sure you understand these rules before you join a plan.

 

Medicare advantage policies and prescription benefits

(If you choose to have your medical services covered by a Medicare Advantage policy, you should investigate the programs that provide prescription benefits to their members. For many, this is a better way to get prescription drug coverage.)

Understanding your coverage in some detail is important, however there is no point in reviewing details of policies that are unlikely to work well for you. This is where Medicare.gov's and its plan finder comes in.

This tool is free and easy to use. After telling the website where you live and giving it the names and dosages of your medications, you will receive an estimate of the costs you are likely to pay for any given policy.

Determining the premiums you might pay for a plan is fairly easy. However there is more you will need to know. You will want to know if a given policy covers the medications you use and if the insurance will include a local pharmacy in their network.

The Medicare plan finder can do all this for you. In addition, it will give you an estimate of your costs for the following year. Since you will be paying for both the policy's premium and the copayments and deductibles, the estimate includes all of the above in the calculation.                                                                                                      

This tool is widely used by insurance agents as well as Medicare beneficiaries. (It will also help you compare Medicare Advantage policies.)

 

Other steps to take

After you have gotten your short list of policies that are likely to work well for you a logical next step to take is to start learning more about each policy. You are likely to have a monthly premium. You may have a deductible. You are likely to have copayments and coinsurance for your prescriptions also.

You can get information about each plan from the company. You should be able to view or print the information from the company's website. Whether or not you choose to enlist the aid of an agent to help with enrollment, knowing the benefits each policy will provide before signing a contract is crucial.

 

Summary

You are likely to find several plans offered to you from several private insurance companies that seem to meet your needs. By using Medicare.gov's Medicare Plan Finder before you make a change, you will be able to see which plans provide coverage for your state and town.

You will see which are likely to have a low cost when the monthly premium, deductible and copayments are all considered. By contacting the various company's websites or agents you can learn what is required of you in regards to using their network. Following these steps should make it easier for you to select the right prescription drug plan for you needs.

About the author: Alston J. Balkcom is a veteran insurance agent.  He is the head of a family-owned insurance agency.  He helps clients find Medicare health plans in Connecticut.

* Image licenses: US-PDGov