3 Ways to Save Money on Your Medicare Part D Prescriptions
As prescription drug prices continue to rise, many may struggle to manage their healthcare expenses. These costs can be a significant burden if not managed correctly, and could force difficult financial decisions. To avoid these difficult situations, below are a few practical strategies to help you save money on your Medicare Part D prescriptions.
Understanding Medicare Part D Costs
Medicare Part D provides prescription drug coverage to eligible individuals, offering financial relief for medications that are often costly without insurance. Part D plans are offered by private insurance companies that are approved by Medicare. While it can reduce the financial burden of medications, Medicare Part D plans do come with expenses, including:
Premiums: The dollar amount you pay each month for your Part D plan. These vary based on the plan and provider.
Deductibles: The amount you must pay out-of-pocket up to a certain threshold, known as the deductible. After the threshold is met, the insurance provider begins to share healthcare costs.
Copayments or Coinsurance: After meeting your deductible, this is the share of medication costs you are responsible for. These costs are predetermined and dependent upon your plan and the type of medication.
Out-of-pocket maximums: This is the maximum amount of money you must spend on medical expenses within a timeframe before your Medicare Prescription Part D plan will cover all costs.
With Medicare Part D, the cost may seem heavy up front, but if chosen correctly, Medicare Part D prescription plans can alleviate the heavy burden of medication costs.
Why Saving on Medicare Part D Is Important
The financial burden of prescription drugs can be very high without Medicare Part D. Many seniors and others relying on Medicare Part D may be forced to choose between medications and other life essentials. Attempting to go without some medications can be detrimental to one's long term health. By taking practical steps to reduce prescription expenses, you can better manage your Medicare Part D Plan, your budget, and maintain your health.
3 Practical Ways to Save Money on Medicare Part D Prescriptions
Below are three practical ways Informed Choice recommends you save money on Medicare Prescription Part D:
Change to Compare Plans Annually
Medicare Part D plans vary in terms of premiums, deductibles, formularies (covered drugs), and pharmacy networks. What works well one year may not be the best choice the next. Carefully compare plans during the annual open enrollment period (October 15 to December 7). Each year the plans may change and so may your medication needs. Potentially switching to a plan that better suits your needs each year can save hundreds of dollars annually.
Use Generic or Lower-Cost Alternative
Generic medications often cost significantly less than their brand-name counterparts and provide the same effectiveness. When prescribed medication, ask your doctor or pharmacist the generic version of your prescription or even a therapeutic alternative. Additionally, check if your plan’s formulary includes any lower-cost options.
Utilize Discount Programs and Assistance
There are several programs, federal and state, designed to help Medicare Part D beneficiaries save money. Some include:
State Assistance programs: Some states offer programs to help you save on prescription drugs. See this link for state-by-state details from HHS. Additionally, some states have State Pharmaceutical Assistance Programs (SPAPs) which pay for prescription drugs for qualifying individuals.
Federal Assistance Programs: The federal government does offer assistance programs for some qualifying individuals. Known as the Extra Help Program, this federal assistance can greatly lower medication costs for qualifying individuals. Eligibility for the program is determined by the Social Security Administration’s evaluation of an individual's resources and financial income. The application for the Extra Help Program can be found here.
Check with your plan provider or connect with one of our experts to learn more about what financial assistance programs are available to you.
How Informed Choice Can Help You Save on Medicare Part D
At Informed Choice we are dedicated to helping you find clarity in your insurance and find the best Medicare Health Programs. Our experts can help you compare the plan options available to you. We will help you find a Medicare Part D Prescription Plan that fits your unique needs.
Learn more about our Medicare Services here or reach out to one of our experts to get individualized help navigating the complexity of Medicare.