Senior Health Insurance

The new kid on the Medicare block is Part D or Prescription Drug Coverage. Adding this prescription drug insurance option to Medicare can make a world of difference to many seniors as well as to other Medicare recipients.

Medicare Part D is provided by insurance companies not the federal government. This is also true for Medicare Part C.

Prescription drug coverage or Part D can be purchased separately from your other coverage or as part of another policy. Drug coverage can be incorporated into a Medicare Advantage policy. If you have Original Medicare and a Medicare Supplement, you may choose to buy a separate prescription drug policy to add to your coverage, you may choose to get a Medicare Advantage policy that includes equivalent prescription drug coverage.

The exact benefits of a prescription drug policy will vary from company to company, but the variations are limited. Each policy has to be as good as or better than the standard model.

The standard benefits for 2011 include a prescription drug deductible of $310. If you meet that deductible, any prescription drugs cost in excess of the $310 deductible will be covered at 75% until your total costs for drugs reaches $2,840. This total cost includes the deductible. Any generic drug costs in excess of this amount will be paid by the insured at a 93% rate until the total costs reach approximately $7,000. Name brand drugs are discounted by the manufacturer so that the cost to the insured is approximate half of the standard costs for those drugs until your total costs exceed $7,000. After your drug costs reach approximately $7,000, your insurer will pay 95% of the cost of your drugs.

This coverage, although complex is very important and will extend the lives of many Medicare beneficiaries who otherwise would not be able to afford their prescriptions. It is available without any health screening so your current need for prescription drugs will not keep you from qualifying.