You can arrange the amount for a surgery, operation, or checkup, but the day-to-day cost of a particular medicine might be a little too much. Imagine having a cancerous disease; the prescription drugs might cost you a fortune. Since you need these drugs daily for survival, you must be acquainted with Medicare Drug prices.
Medicare is a form of health insurance that can help you reduce prescription, care, and doctor visits costs. Since some brand drugs can be expensive, you should have Medicare coverage for prescription drugs, especially if you need a particular drug for survival. However, are you aware of the Medicare drug coverages and their prices?
Don’t worry; you’re at the right place. We’ll tell you all you need to know about Medicare drug prices for 2021.
What is the Medicare Prescription Coverage?
Medicare has several parts, and Medicare Part D covers prescription drugs. Now, there are two options in which you can get Part D of Medicare prescription coverage. If you’re enrolled in an Original Medicare program, you can opt for a separate Part D plan. There are plenty of private companies which provide part D, and Medicare approves them.
Alternatively, you can opt for a Medicare Advantage (Part C) plan. These are also privately-owned plans which collectively cover Part A, B, and D plans. It’s totally up to your discretion to select which of the two approaches you want to go with. However, the cost for a Part D prescription plan depends on your preferences.
Let’s take a look at the Part D prices for 2021.
Part D Prescription Drug Prices for 2021
The payment options and the process for Medicare Part D are quite different from other Medicare parts. Firstly, there is a monthly premium that you have to pay separately for a Part D prescription plan. After that, there is a set deductible that you have to pay for your Part D plan. Once you pay your deductible, you enter into a tier set, which determines the rate of your copays or coinsurances.
For starters, the standard Part D prescription premium for 2021 is around $33.06. This premium is income-adjustable and can go as high as $77 for people earning more than $500,000 annually. Some companies may charge you even less than $33.06; it all depends upon your provider and plan.
Next comes is the deductible. For 2021, the standard fixed deductible is $445, which is higher than 2020, i.e., $435. Once you meet these deductibles, you have to go through four phases of the Part D plan. These are as follows:
- Initial Deductible
- Initial Coverage Phase
- Coverage Gap
- Catastrophic Coverage
The first Part is the standard deductible payment. Once you pay it, you enter through the next phase, i.e., the initial coverage phase. In this phase, you have to pay 25% of the drug amount. Once you spend a total retail amount of $4130 on your drugs, you will proceed to the Coverage gap or Donut Hole.
Here, you’ll receive a 75% discount on drugs. Since it’s similar to the previous phase, the CMS has discontinued this phase. After this, once your total out-of-pocket costs exceed $6550, you’ll enter the catastrophic coverage phase, where you only have to pay 5% of the drug cost. Most people remain in the second phase for the rest of the year.
Overall, it is seen that Medicare drug prices are rising. However, CMS reports that drugs covered under the Part B plan have witnessed a decline in their cost. Nonetheless, these prescription plans are useful because they can drastically reduce the cost of brand drugs. Consider paying an insignificant amount of 5% for a high brand drug? Doesn’t it interest you?