When it comes to health care, the cost of prescription drugs can be crippling. The federal government has tried to deal with this issue by creating the Medicare prescription drug plan. Medicare is the government health insurance program for people 65 and older. In the past, it has had coverage gaps that placed the cost of buying prescription drugs on elder Americans. In an effort to close this gap, legislation was recently passed expanding Medicare coverage. The expanded coverage covers prescription drug costs and is known as Medicare Part D.
Given the fact we are talking about a government plan, it is hardly a surprise that things are not laid out in a simple manner. Instead of one straightforward approach, there are two plans for the drug coverage. The first is known as the stand alone plan. As the name suggests, this plan is an add on to basic Medicare coverage. You effectively pick the addition to the plan and go from there. The second approach is known as the Medicare Advantage Plan. This option combines your prescription drug coverage with your basic HMO or PPO coverage.
Regardless of the approach you take, there are some universal aspects of the coverage. First, everyone gets coverage regardless of income. Second, the coverage is voluntary, which means you do not have to buy it if you don’t want it. The coverage is also absolute regardless of your medical condition.
So, what can you expect from these programs when it comes to actually using them? Well, you should expect to pay a deductible of up to $265 before coverage kicks in. You can then expect to have roughly 75 percent of your prescription drug costs covered by the plan up to $2,400 a year. If your total drug costs for the year are more than $2,400, you are going to be required to pay the total cost of the first $3,850 before coverage kicks in. If your total costs exceed $5,450 in a year, the coverage will cover 95 percent of the cost above this figure. Confused yet?
The Medicare prescription drug coverage certain has its critics. That being said, it is better than what was previously offered. Ultimately, there will be clear problems with this approach and the government will most likely tweak the plan in an effort to address those problems.
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