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Understanding Medicare Part D

Understanding Medicare Part D

The Medicare program is available in four parts which are A, B, C and D. Medicare Part D offers prescription drug coverage. More specifically, it will offer outpatient drug coverage and is provided by private insurance companies, which have a contract with the government. It is important to note that the plan is not provided by the government directly like the Original Medicare is offered.

Individuals who are keen on the coverage need to enroll in a private drug plan or a Medicare Advantage Plan with drug coverage. There is no compulsion of enrollment, but it is advisable to enroll in the plan to avoid penalties in the future. You can enroll in the plan only during the approved enrollment period. It is best to sign up for Medicare Part D when you become eligible for Medicare.

It totally depends on your circumstances whether you should sign up for the Medicare Plan D plan or not. If you have a drug coverage from the employer, you might not need this plan until you lose the coverage.

What should you consider when you choose a plan?
There are a number of factors you need to keep in mind when choosing a Medicare Part D plan. They are discussed below.

  • Cost
    The cost of the plan will vary according to the type of plan you choose. It includes premium, coinsurance, and copayments, as well as deductible expenses. Compare the plans and the cost associated with them to choose the one that is perfect for your needs.
  • Pharmacies
    There are some plans, which have preferred pharmacies, where you have to pay a lower cost sharing. If the pharmacy of your choice is not a part of the network of the plan, you might have to bear higher copayments in addition to coinsurance costs. You need to consider the preferred pharmacies and ensure that you are choosing a plan that includes your choice of pharmacy as well.
  • Travel
    If you are someone who spends a lot of time traveling or staying out of the state, you will have to inquire whether Medicare Part D coverage is offered in a different state or not. Sometimes, you might have to pay a higher cost-sharing amount if you need the drugs out of the network of the plan.

There are numerous insurance providers you can choose from. Consider your requirements and pick a plan that fulfills all your Medicare needs.