How much does Medicare Part D cost?
There are four types of costs associated with Medicare Part D prescription drug coverage: premiums, deductibles, copayments, and a coverage gap during which period you must pay the full cost of your medications. People with low incomes may apply for a subsidy from the Social Security Administration to reduce these costs. In 2006, Part D premiums average $32 per month; the range is $0-$75. The deductible — the amount you must pay out-of-pocket before Medicare will contribute to your prescription costs — for most plans in 2006 is $250. After you meet the deductible, Medicare will pay 75% of your prescription costs. However, after you and your plan together pay a certain amount for covered prescription drugs ($2,250 in 2006), your plan stops paying anything and you must pay the full cost of the prescription. The plan begins to pay again — and pays more of the cost than before you fell into the coverage gap — when total expenditures reach a “catastrophic” level ($5,100 in 2006).
There are four types of costs associated with Medicare Part D prescription drug coverage: premiums, deductibles, copayments, and a coverage gap during which period you must pay the full cost of your medications. People with low incomes may apply for a subsidy from the Social Security Administration to reduce these costs. In 2008, Part D premiums range from $0-$50 per month (depending on the plans available in your town and on the partiular plan you choose). The deductible — the amount you must pay out-of-pocket before Medicare will contribute to your prescription costs — for most plans in 2008 is $275. After you meet the deductible, Medicare will pay roughly 75% of your prescription costs. However, after you and your plan together pay a certain amount for covered prescription drugs ($2,510 in 2008), your plan stops paying anything and you must pay the full cost of the prescription. The plan begins to pay again — and pays more of the cost than before you fell into the coverage gap —
