Medicare Part D drug plans provide drug
benefits to millions of seniors. One problem with the design of Medicare Part D
is that the insurance companies that sell the plans often make changes to the
plans for the following year. These changes plus changes in your circumstances
could mean that the best Part D plan this year may not be best next year.
Having the wrong Part D plan can cost you over $1,000 a year.
You cannot assume that the Part D plan you are
on this year will be the best one for you in the following reasons:
Changes you have made in the past year:
1. Changes in the medications you take-
You may have new medications or have dropped others that you no longer
need. This would impact which plan is best for you.
2. Change the Pharmacy
you use. With some plans, you get the best price on drugs by using a specific
pharmacy. Changing where you get your drugs could impact the best plan for you.
3. You have moved to a
new area. Not all plans are offered everywhere, so if you have moved, be sure
to determine the best plan for your new location.
4. Do you or
would you use generics or only name brand drugs- Generic drugs often have lower
costs than name brand drugs. If you are willing to use generic versions (with
your Doctor’s approval), could save you a lot of costs. Generic drugs may
be covered differently in the different plans and these can change every year
as well.
Changes within the plan
1. Changes in monthly premium- Some
plans increased their premiums while others may have lowered the monthly costs.
Unless you check you will have no idea.
2. Changes in what
drugs are offered in the different plans- Each plan offers coverage for some
drugs but may not offer other drugs. These can change from year to year and
would impact your total annual cost.
3. Changes in the plan
deductible amount. For 2020, your annual plan deductible can range from a low
of $0 to as high as $435. Some plans may have lowered the deductible, while
others have raised it from the past year, which could impact the best plan for
you.
4. Changes in the
plans tier levels for your drugs. The plans place drugs in different coverage
levels. Your copay may be low for one tier and changes in copay costs as the
tier level changes. When a company moves a drug from one tier to another (as
they may do each year) this can change your costs and could impact which plan
is best for you.
5. The insurance
company changes in their providers. These are behind the sense that you have no
idea about but can impact costs.
6. Your plan may no
longer be offered. Three plans from 2018 are no longer available and. If you
had one of these and if you do nothing you will be enrolled in another plan
that most likely will not be the best suited for you. There are also 5 brand
new plans offered for the first time, of which h one could be the best for you.
7. There can be
changes in how different plans treat costs when you are in the “donut hole” and
or beyond. If you do not know what is the donut hole learn more here.
Insurance companies sell the Medicare Part D
plans. Their purpose is to make money for their shareholders. This is the
motivation to make changes within the plans for the next year and the primary
reason you need to go through the process of verifying which plan is best for
you considering all the changes in all the plans in addition to your change in
circumstances.
The bottom line is that there are many reasons
why the plan that you have this year, may not be the best plan for you next
year. The result could cost you a lot of money if you do not change plans. The
time to make the decision is between Oct 15th and Dec 7th.
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