Today, 91 percent of seniors and 61 percent of non-elderly adults rely on a prescription medicine on a regular basis, according to the Kaiser Family Foundation. However the cost of prescription drugs continues to rise. The foundation reported double-digit increases in the cost of prescription drugs during the 1990s and 6 percent in 2004-05. Many health insurance companies offer prescription drug coverage to help pay for those costs.
Comprehensive Coverage
If you have comprehensive major medical insurance (which includes all medical insurance coverage), it probably includes prescription drug coverage. If your comprehensive plan does not include prescription coverage or if you have supplemental major medical insurance, which provides coverage after all your other medical coverage has been used up, you may need to buy additional prescription drug coverage.
Most prescription drug plans work by asking you to pay a fixed amount (called a co-pay) for prescription drugs. For example, your prescription would cost $4 no matter if it was an expensive heart medicine or more routine antibiotic. The health insurance company pays the rest.
Supplemental Insurance
Many people choose to buy supplemental insurance coverage. Sometimes this is because their comprehensive coverage does not cover any prescription medications. Often, supplemental prescription coverage is less expensive than comprehensive prescription coverage or it may include a specific medication the insured person needs.
Medicare
Anyone who is eligible for Medicare is also eligible for Medicare prescription drug coverage. There are several plans that can be adjusted to meet your specific needs. Most have deductibles that must be met before the insurance coverage takes effect but the deductibles can be adjusted lower or higher as you deem fit for your financial and medical needs. After the deductible is met, you must pay a co-pay for each prescription. Additional coverage may be available for a higher deductible and premium. Low-income Medicare patients may not have to pay any deductibles or premiums.
MediGap
MeiGap is a supplemental insurance policy for those on Medicare and may include prescription drug coverage. However, depending on the company, such policies may be expensive, with premiums costing more than $1,000 per year, according to Benjamin D. Zelman, president of SaveWell.com.
Non-Insured
If you don't have prescription drug insurance, there are many programs to help cover the costs of insurance. These programs are offered by local governments and charities. Most drug companies also offer low-cost or free medications to those who don't have health insurance. Many people are choosing to buy prescription medications online or (for those who live near the United States-Canada border) from Canada, where costs may be much lower.
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