If you are paying for an “enhanced” Medicare Supplement Part D Prescription Drug Plan to protect you from the “donut hole” that strips Medicare coverage for your medicines, here’s some good news. The limit on standard Part D Plans is being raised in 2011.
These plans pay for 75 percent of prescriptions up to a limit, and that limit will climb to $2,840 next year. The lower limit in 2010 pushed many people into the notorious “donut hole” where there was no coverage until you had spent $6,440 and catastrophic coverage was triggered.
Health care reform brought discounts from 100 percent in 2010 to 50 percent for brand-name drugs and 99 percent for generic drugs in 2011. With this kind of help, it may no longer make sense to pay for “enhanced” Medigap insurance Part D Plans. A Medicare Advantage Plan also typically provide coverage for prescription drugs and they offer low – or even $0 – premiums in some areas. Just be aware that not all Advantage Plans or Part D Plans cover all prescriptions.
If a high income will land you in the group that will see higher premiums for Part D plans next year, you’ll have another reason to consider switching to a Medicare Advantage Plan. While these plans all have different rules, they may combine the benefits of Original Medicare Part A and B along with Part D prescription benefits. We’ll show you how these plans work right here on our Website.