Overview of Medicare Part D
Medicare Part D is the prescription portion of the new Prescription Drug Improvement and Modernization Act of 2003. Part D is designed to subsidize the costs of most drugs issued to U.S. citizens, where there are some of the prices. The highest prescription drugs in the world. Although the law was enacted in 2003, part D did not enter into force until January 2006.
Eligibility for Part D depends on eligibility for Medicare Part A or B. If a beneficiary has a private plan, such as the Prescription Drug Plan or the Medicare Advantage plan, they can access Part D through the private plan. Some private plans, and even a part of Part C, cover medical services and medications. However, it is important to understand that not all medications are covered by the same level of drug plan. If there is a cheaper alternative available in a lower level plan, it should be used.The Part D drug plan is defined by its structure, not by the beneficiary’s needs. Therefore, in general, each beneficiary must pay a deductible of $ 310 and 25% of the costs of the drugs up to a coverage limit of $ 2830. When this limit is exceeded, the beneficiary must pay 100% of the costs. Medication costs up to $ 4550. When an individual reaches this stage, he enters the “Donut Hole,” an area where there is a coverage gap between initial drug coverage and catastrophic drug coverage. In addition to the Donut Hole, the beneficiary pays 5% of the drug costs at the end of the calendar year.
In January, the deductible is paid again and the increase in coverage limits begins again. In addition to the costs above, the beneficiary also pays a premium monthly to Medicare. Premiums generally range from $30 to $ 40. For individuals who live in poverty, there are low-income subsidies. The monthly premiums for Medicare Advantage Plans may be insured, the yearly deduction and also certain drug payments. In 2010, the Patient Protection and Affordable Care Act was enacted, initiating a ten-year process to close the Hole in Part D. Specific measures have been programmed to reduce the cost of medications for beneficiaries. Such measures include discounts on brands and generic drugs, a decrease in coverage limits and a reduction in the deductible. Meanwhile, many beneficiaries have taken advantage of Medigap plans specifically designed to close the gap between initial and catastrophic coverage. However, there are restrictions, such as a ban on having the Medicare Advantage Plan and a Medigap Policy.