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expressed by Forbes Contributors are their own.
David Haass May 16, 2018
Co-founder
of Elite Insurance Partners & MedicareFAQ, a Medicare learning resource
center for all Medicare beneficiaries.
The
President signed the Bipartisan Budget Act of 2018 into law on February 9,
2018. This legislation affects Medicare Part D prescription drug coverage. Some
of the changes mean discounts for Medicare Part D subscribers, while other
changes make for increases in the amount of money that subscribers will need to
pay.
But what
do these changes mean to Medicare Part D subscribers? Below, I've outlined some
of the highlights of the act to help you better understand how these changes
could impact you and your family.
A Slight Increase To The Standard Initial Deductible
The
current standard initial deductible of $405 is set to increase by
$10 to $415 in 2019. The standard initial deductible has increased steadily since 2015. In 2015 it was $320, in
2016 it was $360, and in 2017 it was $400.
The
standard initial deductible is how much you will pay out of pocket before
Medicare Part D begins to help cover your costs. The increase to the standard
initial deductible means that you’ll spend about $10 more in 2019 than in 2018
before your coverage will begin.
An Increase To The Initial Coverage Limit
The 2018
initial coverage limit of $3,750 is set to increase by $70 to $3,820 in
2019. This initial coverage limit marks the point where you would enter the
"donut hole." This change means that you would be able to buy more
medication before reaching the Medicare Part D coverage gap, also referred to
as the donut hole.
The donut
hole is the period in which your prescription drug costs have exceeded the
initial coverage limit of your plan. Once you’ve reached this donut hole
period, you are responsible for covering the full cost of your drugs. Once the
total cost of your prescription drugs reaches your yearly out-of-pocket
spending limit, however, you will become responsible for just a small
percentage of the drug costs.
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