What you should know about Part D drug plan costs

Part D plan covers the cost of drug prescription for anyone who has part A and Part B Medicare covers. However, Medicare drug plan does not cover all drug prescription in part A and part B. There is a particular list of drugs part D covers in each plan called Formulary. This Formulary is categorized into two main parts; tier one which are less expensive drugs and tier two which are expensive drugs. To enjoy this benefit it is good to find out which tier your card covers.

The cost of drugs in part D drug prescription plan varies depending on the coverage stages you are. Your move from one coverage stage to another depending on the total amount of out-of-pocket cost you pay yearly. Here are different coverage plans available in part D plan.

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Coverage plans

Annual deductibles

In this stage, if you have deductibles you will pay for the cost of your drugs until you reach the limit set by your plan. However, if you do not have deductibles your coverage will start with your first prescription

Initial coverage stage

In this stage, you will pay for the copays and coinsurance costs while your plan pays for the rest of the costs. You will stay in this stage until you reach a limit of $3750 for the total drug cost after which you move to the coverage gap stage.

Coverage gap stage

The limit for the out-of-pocket cost at this stage is $5000. Your out-of-pocket cost will go up if you are at this stage. Therefore for people who use few medications, they may stay in the annual deductible stage or initial coverage stage which is more cost effective for them. Coverage gap stage is ideal for people who use many and expensive medications. If you enjoy extra help program, coverage gap stage does not apply to you.

Catastrophic coverage stage

Your out-of-pocket cost reduces for the rest of the plan year if you are at this stage. The copay and coinsurance cost reduce at this stage.

How to reduce your costs

There are various ways you may opt to enable you to reduce the total drug cost for the part D prescription drug plan. Request for generic drugs, they are low cost drugs. You can lower your copay cost by considering a three month drug supply through mail-order pharmacy. Use the recommended pharmacies for your plan to help you lower drug costs.