Medicare prescription drug plans provide funds to cover the cost of name-brand and generic prescription drugs. Anyone with medical insurance under Medicare is eligible to sign up for a Medicare prescription drug plan. You are responsible for certain costs associated with the prescription drug plan. Since there are several types of Medicare prescription programs, compare each plan's features before enrolling in a specific plan.
Step 1
Use the Medicare Prescription Drug Plan tool. Made available through Medicare.gov, it suggests drug plans based on your answers to a series of questions. Questions include whether you have existing prescription coverage, age, health status and location (see Resources).
Step 2
Review whether the plan has a coverage gap. After you reach a certain allotted amount on the prescription drugs, you may need to pay for the drugs out-of-pocket until the coverage gap ends.
Step 3
Look at the premium rate for each plan. The premium is the monthly payment that you need to pay to the insurance company to have coverage under the drug plan. Ideally, choose the plan with the best coverage at the lowest premium rate.
Step 4
Find out the deductible for each Medicare drug plan. The deductible is the amount you must pay towards your prescription drugs before coverage kicks in. The lower the deductible, the less money you need to pay out-of-pocket.
Step 5
Inquire about the amount of your co-payment. The co-payment may be a percentage of the drug cost or a flat fee you must pay for each prescription.
Tips and Warnings
- If you are unhappy with the plan you have selected, you can change it during the open enrollment period each year that lasts from November 15 to December 31. Remember to check with your pharmacy to ensure that it participates in your selected Medicare drug plan.
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