Medicare Part D Coverage for 2009

Starting in January of 2006, Medicare implemented a prescription drug plan that was made available to Medicare members who enrolled in Medicare part B or Medicare part A plans. If you have enrolled in both Medicare part B and Medicare part A, you are still eligible for this benefit. The Medicare part D prescription plan can be obtained in two different ways. If you use Medicare as your primary form of insurance coverage you may opt to purchase a standalone drug plan normally called a prescription drug plan or PDP. Alternatively, if you have chosen to Medicare advantage private service plan which does not include prescription benefits, you may purchase a standalone PDP.

If you chose the second option which is the Medicare advantage plan, you may opt for the MAPD plan which does include prescription benefits, as well as hospital and medical coverage. As with most PDP's, your prescriptions are administered through insurance companies directly. In the year 2009, the deductible for Medicare plans will be $295. Once that deductible is reached, the plan will cover approximately 75% of the cost of any medication that is covered until your total costs reach $2700. This is not to say that the Medicare prescription drug plan will cover all medications throughout the year. When you reach the $2700 limit, this is what is called a coverage gap. While in the coverage gap, the insured individual is responsible for the cost of their medications until they have paid out a grand total of $4350. This amount will be paid completely out of pocket. If you happen to reach this amount, Medicare is then required to pay 95% of the cost of medication for the remainder of the calendar year.

Enrollment in a Medicare part D prescription drug plan is accomplished during the initial enrollment period. This initial period starts actually three months before your Medicare benefits will begin. It's also possible to sign up for Medicare part D plan during the fall annual enrollment period starts November 15, 2008 through December 31, 2008. If you are outside of your initial enrollment period, you will incur a penalty for late enrollment. The cost of prescription drugs when using in Medicare part D plan can vary greatly depending on your individual circumstances. The number of different plans available combined with any auxiliary insurance options can alter the amount of coverage you are eligible for. Contact your local insurance representatives or even your local pharmacist for more information on signing up for Medicare part D plan for 2009.

References:

http://www.medicare.gov/pdphome.asp