Choosing Medicare and Insurance Options With Part D

There are also several insurance programs that coordinate well with Medicare. Understanding the options available and the provisions of each plan allows retirees to ensure they have the coverage they need and the benefits that will address their unique health care concerns.

What is Medicare Part D?
Part D is prescription drug coverage offered through a federally approved insurance provider. There are two ways in which to get this coverage.

1. Medicare Prescription Drug Plans (PDPs) – These plans are supplemental coverage that can be added to another plan that was previously selected. They can be used to supplement several plans, including:
• Cost Plans
• Private Fee-for-Service Plans (PFFS)
• Medical Savings Account Plans (MSA)

2. Advantage Plans – These are insurance programs that allow seniors to select Part A, Part B and Part D coverage all under a single plan. Sometimes called MA-PDs, these kinds of Advantage Plans can include HMOs, PPOs and others.

What Does This Coverage Cost?
Retirees must enroll in a PDP upon first becoming eligible for Medicare coverage, unless they are covered by another prescription plan with some other provider. If an individual fails to enroll when first eligible they may see late fee charges as a result. Loss of coverage from another provider qualifies seniors for enrollment in a PDP without a late fees being incurred.

The prescriptions covered under different plans and the insurance premium cost for each plan can vary. There are tools available from the U.S. government that can assist seniors in finding the right prescription plan for their specific needs, including a Drug Plan Finder tool that will allow retirees to compare the plans offered in a particular geographic region.

The insurance premiums for Part D are partially based on income, meaning that those seniors with a higher annual income can end up paying higher premiums for their PDP or their Advantage Plan that includes Part D.

Eligibility
In order to be eligible for Part D, retirees must either:
1. Already have Part A and/or Part B and choose a standalone PDP
OR
2. Elect an Advantage Plan with Part A and Part B, and add Part D

Part D Enrollment Process
Once a senior has selected a PDP, he or she may have several options completing enrollment.
1. Some companies offer online enrollment through the completion of a simple internet form on the company’s website.
2. Others offer paper applications for new enrollees to complete.
3. Individuals may also enroll over the phone by calling the company or by contacting the Medicare office.