Medicare Part D and you
According to the Center for Medicare, Medicare Part D is a prescription drug plan available to anyone 65 or older; anyone who has end-stage renal disease; anyone eligible for Medicare Parts A and B; and anyone receiving disability from Social Security. Medicare Part D consists of co-pays, deductibles and out-of-pocket expenses.
Expenses
Medicare Part D requires a $310 deductible, as of 2010, to be paid before the plan pays anything. Once met, the insured is responsible for 25 percent of the cost and Medicare pays 75 percent. This scenario continues until the insured has paid $500 in out-of-pocket expenses.
"Donut Hole"
As of 2010, after the insured has reached $500 in out-of-pocket expenses, the insured falls into "donut hole" coverage. During this time, the insured loses all prescription coverage until the out-of-pocket expenses total another $2,830. At that point, the prescription plan pays 100 percent. This continues until the insured has received $6,440 in drug costs. At that point, the insured is responsible for 5 percent of all future drug costs for the remainder of the year.
Extra Help Paying
The Medicare Part D program does have provisions for the qualified individual who cannot afford the cost of the plan and does not have other insurance prescription coverage available. This program is for low-income individuals. As of 2010, to qualify, a single person must have an annual income of less than $16,245 and resources less than $12,510. A qualified married individual must have an annual income of less than $21,855 and resources less than $25,010.
Tags: Medicare Part, less than, out-of-pocket expenses, annual income, annual income less, continues until
