Medical Insurance

What is Medicare Part D?


It's on the news, in your mailbox, and even in national chain stores. The marketing for this new Medicare option is everywhere but what is it? It is new option that is available to America's Medicare eligible senior population. The goal of Part D is to make prescription drug coverage available to all of America's Medicare eligible seniors. The plan offers coverage for both generic and brand name drugs in exchange for an additional premium.

Part D is administered differently than Medicare A and B. The administration of Part D plans has been placed in the hands of third party private insurance carriers. They design, market, sell, and administer Part D plans that are actuarially equivalent or better than a standard design set by Medicare. This means that all plans that are out there are at least “as good” as a basic guideline that was set by Medicare. That third party insurance company will collect the premium, distribute cards, process the claims, and provide the customer service for the Medicare eligible seniors that enroll in their Part D plans.

Even though all Medicare Part D plans will meet at least a basic threshold of coverage there is a lot of variation in the type of plans that are out there. They vary in level of benefits as well as the premium cost to the member. It is therefore important for each individual to look at there own healthcare needs to determine the plan that is right for them.

It is important for each senior who is eligible to research and choose a plan when they become eligible, even if they are currently not taking any prescription medications. This will ensure that they have the coverage they need should they begin to take any medications and prevent any excess fees for joining later.

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