Medicare Part D has a few different costs. First of all there is a monthly premium that you pay each month to maintain coverage just like with regular health insurance. Then there is also the cost you will pay in order to purchase your prescription drugs which will vary depending on which type of medicine it is. If you have low income you may qualify for some extra help on this program.
2018 Costs of Medicare Part D
When you sign up for Medicare Part D you will notice that the costs are pretty low. In 2018, if you’re a solo person and your income is between $85-$107k, you will only pay $13/month. If you make between $107,000-$133,500 you will pay $33.60/month. If you make $133,500-$160,000 you will pay $54.60 per month. If you make over $160k, you will pay $74.80 per month. This is an additional cost to whatever your Medicare plan costs are.
You cover the $405 deductible before any type of coverage kicks in. If you are on an expensive prescription drug, this could kick in with just one order of the drug. Or, if you are not on an expensive one, it could take a few orders for you to pay off the full deductible. After you pay the deductible some coverage will kick in. There will be a 75% coinsurance up to a certain point, and after you reach the point of having paid about $2,700, you will have to pay even more. However, if you pay up to $5,000 out of pocket, then the coverage goes up to 95%! So, it goes up and down throughout the year, but the one thing that stays the same from year to year is that it always resets in the new year.
Do You Have to Get Medicare Part D?
You don’t have to get Medicare Part D but you will probably want to. Having an additional cost added onto your Medicare monthly payments may not seem ideal right now, but if you delay getting Medicare Part D then you will have to pay a penalty once you do sign up that will actually add to your monthly cost. It might not make much sense to you but it’s not up to you to question the procedure, just to follow it.
With Medicare Part D you can now pay for your prescription drugs so make sure you take full advantage of the program. If you don’t sign up when you turn 65 and you do not have other types of prescription drug coverage, you may be shooting yourself in the foot because you will think you are saving money now, but if you get really sick or decide to get coverage later, you will have to pay more. Some prescription drugs are extremely expensive so make sure you are covered. It’s easy to sign up.