How Does
Medicare Part D work?
You will pay
an Insurance Company a monthly premium and in return you will receive 3 levels
of coverage.
Level 1:
This is the type of prescription that you are used to, during the first level
of coverage you will pay a set copay for each of your medications.
- ·
Typically
you will pay $0-4 dollars for Tier 1 generic medications
- ·
Typically
you will pay $12-20 dollars for Tier 2 generic medication
- ·
Typically
you will pay $35-40 dollars for Tier 3 “Preferred Brands”
- ·
Typically
you will pay $80-95 dollars for Tier 4 “non-Preferred Brands”
Level 2:
Level 2 is often referred to as, “The Donut Hole”. You will reach level 2
coverage when your costs plus the costs that your insurance company has spent
reaches $2,970.00 dollars. Once you reach level 2, you will not have a simple
copay to pay, instead you will pay “co-insurance”, which means you will pay a
percentage of what the insurance company is paying for each medication.
- ·
Typically
you pay 79% of generic medications
- ·
Typically
you pay 47.5% of brand name medications
Level 3:
Once you and your insurance company have paid out about $4700 for your
medications, you enter, “Catastrophic coverage”. Once you enter this level of
coverage, your cost per medication is reduced substantially, and you are guaranteed
to pay a small co-insurance for each medication.
Donut Hole
Relief: Currently, you are required to pay 79% for Generics and 47.50% for
Brand name medications, however these percentages are being reduced every year,
and in 2020 the highest percentage you will pay is only 25%.
My name is
Robert Bache aka, MedicareBob. I am a licensed insurance agent and I specialize
in Medicare. Please contact me with any of you Medicare Insurance questions.
Phone Number: 1-800-525-0299
www.MedicareBob.com
www.SrHealthcareDirect.com
Robert@SrHealthcareDirect.com
