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Medicare Part D covers a portion of your prescription drug costs.
Since many other parts of Medicare (Part A, B and C) do not offer great coverage for prescription drugs, Part D has become a popular option for seniors. Below we take a look at the costs, deductibles and more for Medicare Part D.
The current average monthly premium for Medicare Part D is about $33. This rate will vary depending on the plan you choose and what state you live in.
Part D deductible plans range from $0 to $415. Do your homework to factor yearly costs with the drugs that you will need to take before selecting your premium plan.
A coinsurance is a percentage of the price of your prescription. A copayment is a fixed dollar amount for your prescription.
You will typically have to pay coinsurance on drugs in higher tiers, with lower tier drugs sticking with a copay pricing model.
Keep in mind, drug pricing will be designed to encourage you to select lower cost drugs.
Unfortunately, yes. Called the coverage gap or donut hole, you will be responsible for 25% of all your drug costs when you reach a limit of about $4,000 in yearly drug costs.
However, once you’ve paid over $6,350 for out-of-pocket drugs costs, you leave the gap/donut hole coverage and enter catastrophic coverage.
During this period you will pay significantly lower copayments or coinsurance costs.
That’s the basics on how much does Medicare Part D cost. Check out more info on Medicare costs here…
This is part of our ongoing series: How much does Medicare cost?
Read the next article in the series: How much does Medicare Part C cost?