Many seniors will look into Medicare Part D plans because they help save hundreds to thousands of dollars every year. Although other plans are available, the most popular is Part D because of its wide range of coverage options. This makes them uniquely designed to fit a large scale of situations, from seniors needing low to high coverage and price ranges. We will discuss why you should look into Medicare Part D plans and how to find the best deal using our price comparison tools.
What Is Medicare Part D?
You might have heard about Traditional Medicare and how much coverage is offered by Part A and Part B. These help with costs for doctor visits, hospitalizations, and more. However, in most cases, it will not cover medication costs and leaves these for you to pay out of pocket. That is where Part D comes in. It will help cover costs for most generic prescriptions and part or all of the brand names as well.
It is not designed to be a stand-alone insurance policy, but as additional coverage with Traditional Medicare or Medicare Advantage. But, long as coverage does not overlap with another type of insurance you may have, you may be able to add it. Furthermore, it is compatible with all Medicare plans, including plans offered by private insurance companies.
When you need medications regularly, Part D covers most of the inexpensive and common drugs, but it may cover the cost for some of the less frequently used or expensive drugs too. Generally, Part D will cover, on average 56% of generic drug costs and 35% for brand names. Rare and expensive medications my cover less than this or have a higher premium. That is why comparing Medicare Part D plans is suggested before enrolling in one.
What Is The Best Time To Sign Up?
You are allowed to sign up for Medicare Part D plans when you qualify for Medicare Part A and B. This occurs just before you turn 65 years old. Many seniors decide to enroll when applying for Medicare within 3 months of their 65th birthday. The reason is, there is a small six-month window to enroll called Open Enrollment. This is a one-time period that lasts 3 months before and 3 months after you turn 65. In this window, you cannot be denied coverage for the plan or insurance company you prefer to use. In addition, the rates offered are at the lowest possible.
When you wait to enroll, it can result in higher premiums and even being rejected for the plan you want. Insurance companies are no longer allowed to deny you during this one-time window, but afterward, they can choose to increase prices based on your pre-existing health conditions, but they are not allowed to ask medical questions to provide a quote during the initial Open Enrollment period. They may even deny you coverage if they consider you too high-risk.
Because enrolling early as possible is best, it is important that you understand your options early. You may add Part D to your Original Medicare if it offers sufficient coverage, but you may save more going with a Medicare Advantage plan with Part D. Depending on the plan, seniors can have nearly all expenses covered.
You may use our website to learn more about each plan before making your decision. Once you know which plan would provide you the best coverage, enter your zip code into our free comparison search engine to get a list of current rates in your area.
How Much Will You Pay?
When you are shopping around for insurance plans, especially with Part D included, the rates will vary greatly. Insurers are allowed to set their own prices and add additional benefits to the base package designed by Medicare. This will often cause prices to fluctuate as companies like Aetna, AARP, Cigna, and others compete against each other.
Additionally, rates do not stay the same forever. Insurance companies often change prices, sometimes often as daily. They can also switch up the additional benefits or perks they add, even add or remove plans from their lineup. To be sure you always have the best deal, you should review your options often. Our goal is to help as many seniors save money without losing out on the coverage they need to maintain their health.
The average monthly cost for Medicare Part D is $35, but this varies between cities and states. Therefore, you may pay more or less for the same plan your friend has if their in another area. The reason is, some states have a much higher cost of living. Keep that in mind if you plan to move in the future, because your rates may change too.
Before insurance coverage starts, you will have a deductible to meet out of pocket. Although there is a monthly premium, deductibles must be met. The required deductible varies between plans, but the lower the deductible, the higher your premium. Likewise, the higher your deductible, the lower your premium will be. The maximum deductible amount at this time is $405, but the average is much less. There are plans available that have a zero deductible, which helps keep the out of pocket costs low as possible.
Pick Your Insurance Company Carefully
You will find that there is a long list of insurance companies that offer Medicare Part D plans. That gives you plenty of options to shop around for the best coverage and price. You will want to choose a company carefully because it is something you will depend on. We are here to help you sort through the options with a list of the best insurers available for Part D. Simply enter your zip code and receive all the latest quotes for insurers in your area.
The following are some of the most common insurers and some of the benefits they offer.
This company has partnered up with Walgreens to ensure their customers have access to a trusted pharmacy. They are also known for providing a very comprehensive amount of coverage and adding additional perks to their plans that benefit seniors.
This is another insurance company that is well-known for providing great coverage options. They also have a large network of clinics, doctors, and pharmacies to give you the best selection possible, along with discounts and more. If you want to be covered in more than your local area, Humana is a good option to look into.
This company offers a selection of Medicare-based plans and include some senior benefits to their plans as well. Things such as the Silver Sneaker program can help seniors save on gym memberships, giving access to all participating gyms nationwide. They often have lower rates and remain competitive.
Although premiums are a little higher than Aetna, on average, Cigna offers a larger selection of bonus benefits. All you need is to be a member of Cigna to get these benefits that can include a range of services. The enrollment process has been simplified to make it quick and easy too.
These are just some of the more popular insurers that we have picked out. We’re here to help if you need further assistance in choosing a plan, company, or just have more questions you would like answered. We want to be sure you have reviewed all of your options to understand what type of drug coverage you may need now and in the years to come. Of course, this may require speaking to your doctor to see what they expect.
Keep in mind there are several other types of drug plans available, Part D is just the most popular. If you are interested in learning more about these, we can help with that too. Simply reach out to our team of experts, and we will gladly discuss what options you have available in your area. Sometimes the lowest plan available will not be the one that saves you the most money either. We can help you figure that out as well.