Wednesday, May 12, 2010

How Does Medicare Part D Work

What is Medicare Part D?


Medicare Part D is a prescription drug insurance plan that provides beneficiaries with prescription drug benefits, such as discounted medicine and durable medical equipment. To receive prescription benefits the plan holder must pay a monthly premium and/or deductible to ensure continued coverage. Failure to pay results in an interruption of coverage. Prescription costs vary by plan, but provide comparable discounts and prescription options to other employer and union insurance plans. Not every plan will cover the same drugs, so each applicant must search current medications for coverage under the Medicare Part D plan available to him.








Plan Tiers


Medicare Part D uses a tier-based system to determine pricing and eligibility for prescription drugs. Each tier, or group, is priced at a determined price bracket and/or co-payment assignment. The co-payment assigned for each tier fluctuates depending on the income level of the beneficiary, as well as the plan type. All plans cover both brand name and generic prescription drugs and are accepted at most pharmacies. The plan is set up to help people with high prescription costs, to reduce sickness and promote health.


Provides Protection


Medicare Part D works to prevent an unexpected rise in prescription costs and to provide protection to those who are qualified (persons 65 years of age or older) as well as protect those who qualify but have a limited source of income. This type of additional assistance is done on a case by case basis and, in the event that an applicant is approved, Medicare pays for almost all of his prescription costs.


Options


Medicare Part D was designed to offer beneficiaries more prescription drug options. According to Medicare, Medicare Part D plans must cover all or substantially all drugs in six categories: antidepressants, antipsychotics, anti-consulvants, anti-retrovirals (AIDS treatment), immune-suppressants and anti-cancer. Each plan type within the Part D network details the prescription drugs that are eligible for coverage. To determine if your prescription drugs are covered visit the Medicare website and use the "Formulary (Drug) Finder," or "Medicare Prescription Drug Plan Finder" resource features (see Resources). Both are available for persons with Medicare insurance or those reaching the eligibility age (65) and want to learn plan options and research those drugs that are covered under each plan. The features link to the Medicare database and provide current information by state, brand name and plan type.

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