Medicare Part D Enrollment ends December 7th
Premiums do not accurately indicate annual out-of-pocket for 2017
You only have days left to determine whether you want to change or enroll in a Medicare Part D plan. In fact, there are only five days left. With less than a week, why would I bother talking about this on such short notice? While many have pointed to premium increases in 2017, an average of 4 percent according to Avalere, I caution you to look a little closer! By digging deeper, your wallet may be thanking you this time next year.
For 2017 plans, the benefit of paying less for a monthly premium may not outweigh the annual cost of medications you depend upon. I urge you to take the time to visit Medicare online and learn more before you choose. If you stick with me, I’ll go into how you can access the Medicare Plan Finder on the Medicare.gov website. But, before I can do that, I want to explain the reason behind my concern. If you had planned to default to your 2016 plan under the assumption a small change in your premium would be the only adjustment you’d make, you may be very disappointed.
Year-to-year costs of popular drugs are seeing major increases for the upcoming year, and Part D plans have changed the structure of their drug pricing in response. If you aren’t careful about picking a plan, or if you have added any medications this year, you could see jaw-dropping increases. For example, a co-pay for one single drug went from $7 to $350.
Several trends among insurers have made surprising shifts in cost sharing for beneficiaries possible. Some of the reasons you may be seeing this is because of:
Instructions for using the Medicare Plan Finder
Before starting, make a list of drugs you take. Then, access the Medicare Plan Finder by clicking here.
You’ll see prompts like the ones listed below:
Additionally, on each of the plans, you will see “Lower Your Drug Costs.” Once selected, you will have an opportunity to select cheaper versions of the drugs you originally input based upon their projected annual cost. (Only do this for drugs where you know you could take either.)
When comparing plans, you want to focus on the heading “Estimate of What YOU Will Pay for Drug Plan Premium and Drug Costs.” This amount is what should be used to compare to what you spent last year, and what you’re budgeting for this coming year.
When I performed this exercise, I entered medications for a variety of needs such as: lowering cholesterol and high blood pressure, treating Type II Diabetes, as well as an anti-depressant—all fairly common prescription medications. In each case, when comparing plans in my area, the cheapest premium did not correlate to the least amount paid for annual out-of-pocket. In fact, in nearly every comparison, the most expensive premium often was paired with an annual out-of-pocket expense several hundred dollars less than other plans with cheaper premiums.
More than ever, this year, it does not make sense to stay with the same plan as you selected last year without comparing. And the best news is: it’s not too late! Enrollment is still open through Wednesday, Dec. 7, 2016.
AARP Medicare Resource Guide: Understanding Your Prescription Drug Coverage
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