For 2013 the figures below are the key dollar thresholds for the Medicare Part-D plans.
Part-D Deductible – $325
Part-D Initial Coverage Limit – $2,970
Part-D Out-of-Pocket Threshold – $4,750
The “standard” medicare part-d plan definition includes a $325 deductible. Some plans pay that deductible for you. However, don’t let the absence of a deductible cause you to take your eye off of the real number – your total annual prescription costs. Just because a plan doesn’t have a deductible, that does not mean it is the best plan for you. You need to do your due diligence as always.
Call Medicare at 1-800-633-4223 any time 24/hour/day and tell them you would like to review your prescriptions to make sure you are selecting the best Part-D plan. Give them each of the prescriptions you expect to be taking throughout the year, along with dosages and frequencies. They will enter all of this information into a computer program which will then list the Medicare Part-D plans in order from lowest annual cost to highest annual cost. Then your choice is very simple – sign up for the one that offers you the lowest total annual cost.
The Part-D Initial Coverage Limit is the point at which you will enter the “Gap” or “Donut Hole.” When you have purchased $2,970 of prescriptions through your Part-D plan. This includes the deductible, your co-pays, AND what the plan pays.
The Out of Pocket Threshold is the point at which you exit the “Gap. When you have spent $4,750 of your own money (ie not counting what the plan pays), you enter what is called catastrophic coverage. Nice term isn’t it.
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