Here's what Medicare Part D costs and covers in 2019

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Source of the image: Getty Images.

The basics of Medicare Part D coverage

Unlike regular health insurance, Part D coverage comes from private insurance companies. This is why it is impossible to specify a specific set of costs associated with Part D because each plan may be different. In particular, Part D plans can cover different types of drugs, and many plans list the categories of drugs that divide prescriptions into different groups. One group of drugs may have higher costs to plan participants than others. For example, it is common for Part D diets to provide incentives for people who accept generic equivalents over original drugs.

A good thing with Part D plans is that they can not change their minds about coverage in the middle of the year unless there is an unusual situation. This means that you will usually be able to plan for the full year. However, since plan changes can occur from year to year, you should be aware of the proposed changes in the plan you have chosen to determine whether to find a replacement for the next year.

Costs for Medicare Part D

The costs of the various Medicare Part D plans vary considerably. Some do not have an initial monthly premium, but you generally only get limited coverage for your medications. Other plans have monthly premiums, but you will have wider coverage of the drugs. Again, the fact that private insurers offer Part D plans offers great flexibility in developing plans that can meet the needs of certain client groups.

For high-income taxpayers who have chosen Part D plans, there may be a supplement to the normal monthly premium amount. The table below shows the amount of these surcharges.

Source of data: Medicare. Note: Married persons who report separately and have lived together at any time of the year pay an additional $ 70.90 if their income is between $ 85,000 and $ 415,000, or 77, $ 40 if their income is more than $ 415,000.

From a cost point of view, in addition to bonuses, you may have to pay:

• An annual deductible that you must pay before the coverage comes into effect. The maximum deductible for 2019 is $ 415, but a plan may provide for a smaller deductible if it wishes.
• You will also have to pay copays or co-insurance amounts when you buy prescription drugs. A quota is usually a fixed dollar amount, while co-insurance is a percentage of the total cost.

Also, keep in mind that there is a maximum fee that Part D plans are allowed to charge participants to pay. Catastrophic provisions of $ 5,100 come into play. Beyond this amount, you pay only 5% of the additional costs.

Be smart about prescription drug coverage

Medications can be expensive and, although relatively new, Medicare Part D has become essential for many older Americans. Understand the choices you have with the cover of Part D and get the plan that best fits your prescribing needs.

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