A Prescription drug plan can be obtained as a stand alone plan (would be used with Medicare and Supplement) or one that comes included with Medicare Advantage plan.
Private insurance companies provide either the stand alone plan or Medicare Advantage plan. Each county will have different insurance company plans available to choose from.
Besides the monthly premium for the RX plan there could be a deductible (what you pay first before the plan pays) a formulary (drugs covered on the plan) and Tiers (how much each drug cost - tier 1 generic lower cost vs tier 4 higher costing drug).
Do you have to get a prescription drug plan? No you don't but whenever you decide down the road that you need one you will encounter a prescription drug penalty. This penalty is 1% of the average monthly prescription premium times the months you have gone without having a prescription plan. While not much it is a penalty you will end up paying for the rest of your life while you have a prescription plan. Example John Doe goes 10 years without getting a prescription plan from age 65. 10 years x 12 months = 120 months x .31 cents (1% of average RX monthly premium) = $37.20 monthly penalty. This is a penalty one will have to pay each month on top of their monthly prescription plan premium.
Rookie FACTS: Biggest mistake we see clients make is not getting a prescription drug plan when they get Medicare Part B at 65 or also not making sure their employer plan is giving them credible RX coverage on their existing plan if they elect to put off obtaining Medicare and staying on company plan
We have had clients call us saying they are in the hospital and need a prescription plan. The problem with that is a prescription plan can only be obtained from October 15th to December 7th and would become effective January 1st of the next year. So besides getting a penalty you also can't just snap your fingers and receive the RX plan to cover you when you need it.
How Part D Works?
Whether your taking a few generic prescriptions or a lot of higher costing prescriptions, looking up to see what RX plans will give you the best overall savings for the year can only help.
Overall health can change but we are never certain until it happens. People who are taking prescriptions know that is a cost that most likely stay with them the rest of their life.
Medicare.gov has a tool on their website we use to see which prescription plans would give a client the best overall savings. We will look up this information for our clients and give them recomendations based on what Medicare.gov
You have probably heard of GoodRX but there is another prescription discount program out there called Clever RX. Clever RX has pricing better than GoodRx 70% of the time on more than 55,000 drugs. To get started saving on your prescriptions click the below link at https://cleverrx.com/Dave&DebbieMajherRX