What is new to Medicare Part D prescription drugs plans in 2024?
Even in case you don’t take a lot of medication now, having a Medicare Part D prescription drugs plan in 2024 is important for every person on Medicare. The purpose of Medicare Part D is to help lower your costs for prescription drugs. Part D coverage is available through private insurance companies in one of two ways; as a ‘stand-alone’ PDP (Prescription Drug Plan) or included in a Medicare Advantage (MA-PD) Plan.
Available Medicare Part D Plans in 2024
In 2024, competing insurers offer a broad spectrum of Medicare Part D plans with different benefits. You have two options to cover your prescription drug costs: First, a ‘Stand-alone’ Medicare PDP Part D plan, which can be added both to original Medicare itself or a Medicare Supplemental Policy (Medigap). Second, prescription drug coverage included in a Medicare Advantage plan (MA-PD).
No matter which solution you select, having a PDP is an important and valuable choice to help you with paying for high medication expenses. The numbers of available plans is huge, but it will depend on your local area which plans are available to you.
How do Medicare Part D plans work?
Most Part D plans are using preferred pharmacy networks and formulary cost-sharing tiers, where out of pocket expenses are lower as long as you use those preferred pharmacies, and higher, if you purchase your medication outside of the preferred network.
Premiums for Part D plans in 2024
All stand-alone Part D plans have a monthly premium, which varies by the plan, and is in addition to your Part B premium. If you enroll in a Medicare Advantage Plan that includes prescription drug coverage, your monthly premium for the plan typically already includes prescription drug coverage. Deductibles are also very common for Part D plans.
CMS.gov estimates the average premium for a basic Medicare Part D prescription drug plan in 2024 as $55.50 per month.
Your actual drug plan costs will depend on:
– The plan you choose
– Your prescriptions
– Whether or not your prescription is included in your plan’s formulary (drug list)
– Whether or not you purchase your medication at a network pharmacy
Prescription drug coverage through Part D is one of Medicare’s most popular plans, with over 50 million Medicare beneficiaries enrolled for prescription drug coverage.
The Donut Hole 2024
The ‘donut hole’ refers to the coverage gap in Medicare drug plans after you have reached a specific limit. For 2024, you will be in a coverage gap, if the total of your prescription drugs exceeds $5.030. Between $5.030 and $8.000, there is a temporary limit on what the drug plan will cover for your drugs. Once you have spent more than $8,000 out-of-pocket, you will automatically receive ‘catastrophic coverage’, meaning you won’t have to pay co-payment or coinsurance for covered Part D drugs through the end of the year. Details can be found here.
Compare Medicare Part D plans for 2024
It is very important that you thoroughly compare your plan options, no matter whether you intend to join a Part D plan for the first time, or are already enrolled in a plan. Premiums and benefits vary widely among plan policies, up to an estimated 20 percent.
Extra help for prescription drugs costs
For persons with limited resources who have difficulties paying the premiums and/or out-of-pocket costs for Part D, a federal financial aid program called Special Assistance is available to help. To find out, whether you qualify, call Social Security at 1-800-772-1213 (TTY 1-800-325-0778).
