Choosing a Part D prescription drug plans can often feel like a confusing decision. Some questions that come up might be:
Do you need one? When should you get one? How do you choose one? How do you sign up and so one?
So, for most of you the event that will trigger the option to join a part D prescription drug plan is when you turn 65 and start your Medicare. There may be exceptions for some individuals.
If you qualified for Medicare under the age of 65 and started at a younger age or if you continue to work past age 65 and you still have group coverage at work?
Maybe you stayed on some type of a retiree group plan after you stopped working which includes prescription drug coverage or maybe you simply waited a few years after turning 65 to get a drug plan.
Whenever you do decide that it is time to get a Pat D plan, the steps are basically the same, so we’re going to assume in this case you’re turning 65 and you most likely do want to get a Part D plan.
One important thing to know is that, getting a Part D drug plan is not mandatory. It is an option. Many times when we talk to individuals turning 65, they tell us that they don’t take any medication or they do take a few medications but they are able to get them already from a local pharmacy inexpensively.
The question becomes – “Why would I need a prescription drug plan?” and that does seem like a logical question to ask. One answer to this question is to avoid a late enrollment penalty.
If you do not enroll in a drug plan when you are first able to and then wait until a later date to get a plan, you will have a late enrollment penalty. The penalty is calculated by multiplying 1% for each month that you wait times the Annual Average cost of a Part D. Plan United States which right now is around Thirty four dollars per month.
So if you waited let’s say about a year, and you wanted to get a drug plan, whatever the monthly premium of that drug plan is, you’re going to pay somewhere around three to four dollars a month range of a late enrollment penalty, and you have to pay that penalty forever.
So, what we do recommend getting a Part D plan even if you don’t take any medications now or if the medications you are taking now are inexpensive. This will make sure that you will have something in place in case you need it and you’ll also not have to worry about having a late enrollment penalty down the road.
How do you get a Part D plan and how much do they cost? The answer to this question get a bit complicated because there are a number of factors that come into play in making this decision, such as:
Where you live
The list of medicines that you need on a regular basis
Dosage of each medicine
How many times you take each medicine daily
What pharmacy you wish to use
When we look at the drug plans, we’re going to look at the monthly premium of that plan. We’re going to take into consideration whether there is a deductible, then we’re going to look at what your medicines are going to cost you, either monthly or every 90 days in addition to the monthly premium on the drug plan.
We se the Medicare.gov website as our research tool. We put all your information in there. It will search all the plans. It will tell us which one is the least expensive overall.
Signing up is pretty easy. You can have someone like myself assist you, or you can call Medicare directly, or you can call the drug plan directly as well.
The period of time that you are allowed to choose a drug plan initially is three months before you turn 65, the month that you do turn 65 and three months after. So, you basically have a seven month window of opportunity when you first start your Medicare Part B.
You will then have an additional opportunity once each year to decide if you want to stay on your current plan or change to another plan the next year. This time of year is called the Annual Election Period (AEP).
In recent years, the annual election period for Medicare has been from October 15 through December 7. During that period of time you’re allowed to review the drug plan that you’re on now and decide if you want to stay on that plan or not.
If there has not been any significant changes to the medicines that you need and the plan has worked fairly well for you and the monthly premium is stable, if you take no action you will automatically be reviewed for the next year.
However, if for some reason your current plan is not working out like you think it should, you have the opportunity to shop your drug plan and change to another plan from year to year.
I hope that this brief overview of how choosing to choose a Part D prescription plan has been helpful. If you would like our assistance in helping you determine what Part D plan is the best for your specific needs, pleas contact us at your convenience. Our services are always free to you.
If you have any questions about this subject or would like to speak to us about any of your Medicare needs in regards to Medicare supplement, Medicare Advantage or Part D prescription drug plans, I would certainly be very happy to speak with you.
I am an independent agent specializing in the senior market. I would be very happy to look at your current coverage and compare it to the marketplace to make sure that you are still getting a good value. My services to you will always be FREE.
Billy Williams
800-499-1942
MedicareHealthInsuranceOptions.com
