Understanding Medicare Part D coverage can feel overwhelming, yet understanding your drug coverage is important for maintaining both your health and your finances. With annual changes in drug plans, costs, and coverage details, as well as the changing Medicare landscape, it’s important to review your Part D coverage to ensure you’re on the most cost-effective plan. In this blog, we will explore how partnering with an independent agent for Medicare Part D reviews can maximize your savings.
Step 1: Review Your Current Part D Plan
To keep prescription costs down, you should be reviewing your existing Medicare Part D plan every year. This is because drug formularies can change their covered drug list and drug tiers annually. An independent agent can help you check your current plan’s summary of benefits, the formulary (list of covered drugs), and any associated costs such as premiums, deductibles, copayments, and coinsurance. Their expertise helps you to pinpoint why certain drugs are costing more than others and how you can potentially save. Not all Part D drug plans cover the same drugs at the same tiers!
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Step 2: Compare Other Part D Plans
As mentioned, Part D formularies can vary between plans and carriers. A specific prescription may be covered on one plan as a low tier with a low or no copay. And the exact same prescription can be covered with a higher copay or deductible on a different plan. This means costs can vary significantly from one plan versus another for the exact same drug! This is why you should review your Part D coverage with an independent agent who offers plans from multiple carriers. They can save you time and money by comparing these plans side by side. Their job is to find plans that cover your prescriptions with the lowest out-of-pocket costs. They also consider your pharmacy preferences when looking for plans. This is important since different plans can designate different “preferred” pharmacy. Preferred pharmacies usually have lower cost sharing on your prescriptions.
Step 3. Annual Reviews and Continuous Support
Independent agents are professionals who work for you, not the insurance companies. Their primary goal is to ensure that you find the best coverage at the lowest possible price. You should utilize them every year to review your coverage and for general updates about Medicare and Prescription drug changes. Medicare Part D has been through a lot of changes in the past few years. This includes reductions in insulin and vaccinations, expanding Extra Help qualifications, and overall reduction in costs throughout various coverage stages. Staying up-to-date with the changes in Medicare Part D can help you find more ways to save each year.
Step 4: Medicare Part D Extra Help and Assistance Programs
An agent will also help see if you qualify for Extra Help when completing your Part D plan review. If you have limited income and resources, the Extra Help program can reduce prescription costs through the low-income subsidy. It is important to revisit the qualifications of this program since it can and does change. More people qualify for Extra Help starting 2024 since the eligibility level raised to 150% of the Federal Poverty Level. A licensed agent will know if you qualify and can help you apply.
Learn more about Part D Extra Help in our blog, Understanding Medicare Part D Extra Help: A 2024 Comprehensive Guide.
Conclusion
Reviewing your Medicare Part D plan with a licensed agent can ensure you’re receiving the most cost-effective prescription coverage. By understanding your current plan and comparing other plans, you can optimize your benefits and reduce your medical expenses. Your health needs and plans can change, so annual reviews are essential to ensure you have the correct coverage.
