Are all Medicare Part D drug plans the same?

Asked by: Olaf Weimann  |  Last update: September 29, 2023
Score: 4.2/5 (16 votes)

Medicare drug plans are run by insurance companies and other private companies approved by Medicare. Each plan can vary in cost and drugs covered. If you decide not to join a Medicare drug plan when you're first eligible, you may pay a late enrollment penalty if you choose to join later.

Do Part D benefits vary by plan?

Medicare Part D helps cover the cost of prescription drugs. Part D is optional and only provided through private insurance companies approved by the federal government. However, Part D is offered to everyone who qualifies for Medicare. Costs and coverage may vary from plan to plan.

Why do Medicare Part D premiums vary?

People with high incomes have a higher Part D premium. Vary by plan and by drug within plan. In most plans, after spending usually $4,660 in total drug costs, you reach the coverage gap. During the coverage gap you will have to pay 25% of the cost of your drugs.

How do I compare Part D drug plans?

Medicare Plan Finder is an online tool at www.medicare.gov that can be used to compare stand-alone Part D plans or Medicare Advantage Plans. Plan Finder provides information about costs, which drugs are included on the plan's formulary (list of covered drugs), and the star rating of the plan.

Do all Part D plans cost the same?

Each plan determines its own premium and deductible. While you can have these premiums deducted from your Social Security payment rather than paying an insurance company directly, this generally isn't the best option. Drug insurers typically change which drugs and how much is covered every year.

Medicare Explained - Part D (2023)

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Why are some Part D plans higher than others?

Enhanced plans charge higher monthly premiums than basic plans but typically offer a wider range of benefits. For instance, these plans may not have a deductible, may provide extra coverage during the donut hole, and may have a broader formulary. Some of these plans may also cover excluded drugs.

How much does the average person pay for Medicare Part D?

Key Takeaways. If you have a Medicare Part D plan you may pay premiums, deductibles, copayments, or coinsurance for your prescription coverage. The average monthly premium for a Part D plan is projected to be $31.50 in 2023, though plans vary.

Which is better SilverScript Choice or Plus?

The SilverScript Plus (PDP) offers a $0 deductible for medications on all tiers. The policy has even more drug coverage than the SilverScript Choice (PDP), and you can get your prescription drugs delivered at no additional cost. This prescription drug plan is a fantastic option for those who take high-tier drugs.

What is the best pharmacy to use with SilverScript?

Preferred Pharmacies tend to have lower copayments and coinsurance; SilverScript has over 23,000 pharmacies they consider Preferred. CVS, Publix, Walmart, and Kroger are a few preferred pharmacies.

What is the deductible for Medicare Part D in 2023?

This is the amount you must pay each year for your prescriptions before your Medicare drug plan pays its share. Deductibles vary between Medicare drug plans. No Medicare drug plan may have a deductible more than $505 in 2023.

Can I change my Medicare Part D plan every year?

Your Medicare Annual Enrollment Period (AEP) , sometimes called the Fall Open Enrollment Period, runs from Oct. 15 to Dec. 7 each year. During this time, you may make changes to your Part D plan or switch to a new one.

Why is Medicare D so complicated?

One reason why Medicare Part D is so confusing is the wide range of plans available. There are close to 27 drug plans in most areas for people to choose from. Some plans offer basic coverage, while others provide more extensive benefits but also require a higher portion of out-of-pocket costs.

How often can I change my Medicare Part D plan?

When You Can Switch Part D Plans. In general, you may only switch plans during the Annual Election Period (AEP). This is between October 15 and December 7 each year. Coverage begins the following January 1.

Can I switch my Part D plan?

In most cases, you can only make changes to your Medicare Part D prescription drug coverage during Fall Open Enrollment (October 15 through December 7). Your new coverage begins January 1 of the following year.

What is the maximum out of pocket for Part D?

Catastrophic coverage: In all Part D plans, you enter catastrophic coverage after you reach $7,400 in out-of-pocket costs for covered drugs. This amount is made up of what you pay for covered drugs and some costs that others pay.

Can I avoid the donut hole?

If you have limited income and resources, you may want to see if you qualify to receive Medicare's Extra Help/Part D Low-Income Subsidy. People with Extra Help see significant savings on their drug plans and medications at the pharmacy, and do not fall into the donut hole. See if you qualify and apply today.

Is SilverScript worth it?

Aetna/SilverScript: Best overall

These popular plans are affordable and highly rated. Aetna and SilverScript plans are a good choice for most people because they are priced affordably, typically have a lower deductible than other companies and have a high average rating across most performance categories.

Can I use GoodRX instead of my Medicare Part D?

While you can't use GoodRx in conjunction with any federal or state-funded programs like Medicare or Medicaid, you can use GoodRx as an alternative to your insurance, especially in situations when our prices are better than what Medicare may charge. Here's how it works.

What will SilverScript premiums be in 2023?

For the largest PDP, CVS Health's SilverScript Choice, which has a total of 3.0 million enrollees in 2022, including 1.4 million non-LIS enrollees, the average monthly premium will increase by $2 (+8%), from $31 in 2022 to $33 in 2023.

Is SilverScript a good Part D?

All of Aetna's PDPs have a Medicare star quality rating of 3.5 out of five stars. Aetna's SilverScript Smart Saver plan has the lowest average monthly premium in 2023, and CVS is one of four main providers of stand-alone Part D prescription drug plans in the United States.

How do you qualify to get $144 back from Medicare?

To qualify for the giveback, you must:
  1. Be enrolled in Medicare Parts A and B.
  2. Pay your own premiums (if a state or local program is covering your premiums, you're not eligible).
  3. Live in a service area of a plan that offers a Part B giveback.

Does Medicare Part D cover 100%?

In the coverage gap phase, Part D enrollees pay 25% of total drug costs for both brand-name and generic drugs. Part D plans pay the remaining 75% of generic drug costs and 5% of brand drug costs, and drug manufacturers provide a 70% price discount on brands (there is no manufacturer price discount on generics).

How do I get my $800 back from Medicare?

There is no specific reimbursement amount of $800 offered by Medicare. However, Medicare may reimburse eligible individuals for certain medical expenses, such as durable medical equipment, certain types of therapy, and some preventive services. To request reimbursement, you will need to submit a claim to Medicare.