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Part D – Medicare Cost & Enrollment

Senior woman taking prescription medications with Medicare Part D Plan

Medicare Part D covers your prescription medications at a low cost. What that exact cost is depends on the specific plan you enroll in, as rates between companies vary. Coinsurance, copay, deductibles, and premiums all factor into your overall cost.

How much does it cost to enroll?

Enrollment has a direct impact on what your premiums will be for the remainder of the time you hold your policy.

The Initial Enrollment Period is the best time to sign up if you do not have drug coverage already. It takes place over the course of six months, starting three months before your 65th birthday and ending three months after you turn 65. Not only is this the earliest possible time you can get coverage – but it’s also a time when you won’t have to pay a late enrollment penalty.

The Annual Enrollment Period (October 15 – December 7) allows you to join a Medicare drug plan if you have Original Medicare. If you’ve gone without other drug coverage, your late enrollment fee tacks on an additional percentage on top of your monthly premiums. The penalty accrues 1% per month if you go without coverage. That percentage is multiplied by the premium you’d pay without the fee, and then rounded to the nearest dime. That amount is added to your premium. This is a permanent late fee.

Medicare Advantage Open Enrollment allows you to switch from Medicare Advantage to Original Medicare (A and B) plus Part D.

Special Enrollment is another time you will not have to worry about late fees. You have two full months to join after you lose your current drug coverage.

How much is the premium?

As of 2021, the national base beneficiary premium is $33.06. This is what you can expect, but not necessarily what you’ll pay, as some policies have different rates.

What is the deductible?

Also not a fixed number. However, no Part D deductible from any plan will cost more than $445.

How much is copayment or coinsurance?

There’s no precise dollar amount across the board for how much your coinsurance will be. It is based on a percentage. Deductible included, your savings begin once you and your Part D policy pay $4,130 for medications. Then you will only pay for 25% of overall prescription costs until your total out-of-pocket spending reaches $6,550.

Your plan will work to find the lowest possible price for your medications. Each plan has its own list of covered medications and assigns costs according to four medication tiers. The lowest tier consists of generic drugs, and the higher tiers consist of brand-name and specialty medications. Your plan will help you pay the lowest amount in coinsurance or copayment by working with you, your doctor, and your pharmacy.

Get lower Part D costs with us

Medicare Part D makes a significant positive impact on your savings. And at Wise Up Financial, we bring affordable drug coverage to you. Let today be the day by calling us at 830-308-0123.

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