Medicare Plan Part D (Medicare Prescription Drug Plan)

Medicare Plan Part D is a prescription drug coverage insurance plan that covers both generic and brand name prescription drugs. Most people do have to pay a premium for this coverage.

Plans vary and cover different drugs, but all medically necessary drugs are covered. You can choose what drug plan will be best suited to your needs. You need to enroll when you first become eligible to keep from paying a penalty cost later.

Medicare Part D was designed to help people with Medicare to lower their prescription drug costs and to protect against future costs. A prescription drug plan will also enable you to have greater access to medically necessary drugs.

There are two ways to join the Medicare Part D prescription drug coverage plan. The first is by adding it to your Original Medicare Plan or some Medicare cost plans, private fee-for-service plans, and Medical savings account plans.

The second way is to join a Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) plan that includes Medicare Part D coverage. You will usually have to pay a monthly premium that will vary according to the plan you choose.

You should consider getting Medicare Part D to protect yourself from unexpected drug expenses. Even if you do not use many prescription drugs now, you should still consider joining. As we age, most people need prescription drugs to stay healthy. For most people, joining now means protection from unexpected prescription drug bills in the future.

Important Reminder: Please remember that if you are not happy with your current Medicare coverage, that you may be able to switch your Medicare plans by March 31, 2010.

Medicare Part D changes for 2010

According to a CMS press release, premiums for Medicare prescription drug plans are expected to increase slightly and Medicare beneficiaries may need to enroll in new plans.

Most of the Medicare beneficiaries that are currently enrolled in Medicare Part D drug plans will not see any significant changes in their 2010 premiums. Some people may need to make sure they have the drug plan coverage that they need.

Some Medicare beneficiaries that receive the low income subsidy to pay for their premiums will have to move to a new plan in 2010 to make sure they can stay in a zero premium plan because the plan's premium will be higher than the 2010 subsidy amount. All individuals that are in this situation should have been contacted to make sure they know of the situation.

Based on the bids submitted by Part D plans, the average monthly premium that beneficiaries will pay for standard Part D coverage will be $30 in 2010, an increase of $2.

The basic premiums paid by Part D enrollees will cover about a quarter of the cost of the standard Part D drug benefit. Individuals with low incomes qualify for subsidies that typically cover the full amount of the Part D premiums.

Nearly 10 million beneficiaries are currently getting drug coverage through the Low-Income Subsidy (LIS) benefit. The average value of the Part D benefit, premium subsidy, and cost-sharing subsidy for LIS enrollees is going to be about $4,000 in 2010.

When enrollees become eligible for the LIS benefit, CMS automatically enrolls them in a Part D plan that has a premium at or below the subsidy amount if they do not select a plan themselves. Because of this, these people do not have to pay any Medicare Part D premium.

CMS is continuing to protect the Medicare beneficiaries that are most vulnerable by making sure that upcoming Part D premium changes will cause as little problems as possible.