How much will my drug coverage cost?
Your costs for Medicare prescription drug coverage will vary depending on which drugs you use, which Medicare drug plan you join, and whether you get extra help
paying for your drug costs. Medicare drug plans may design their plans with different coverage and costs, as long as what their plan offers is at least as good as the standard coverage described on the next page.
Contact the plan(s) you are interested in to get specific cost information.
Medicare prescription drug coverage is insurance.
Payments you may make in a Medicare drug plan include the following:
- Monthly premium —Most drug plans charge a monthly fee that varies by plan. You pay this in addition to the Part B premium. If you belong to a Medicare Advantage Plan or Medicare Cost Plan that includes Medicare drug coverage, the monthly premium you pay includes an amount for prescription drug coverage. Some drug plans charge no premium.
- Catastrophic coverage If you have extremely high drug costs, Medicare drug plans provide coverage called "catastrophic coverage." This means that once you have paid up to a certain limit for covered drugs in 2008, you only pay a coinsurance amount (like 5% of the drug cost) or a copayment (like $2.25 or $5.60 for each prescription) for the rest of the calendar year.
Catastrophic Coverage FAQs for current plan year information.
If you get extra help paying your drug costs, some or all of your monthly premium may be covered, and you won’t have a coverage gap. However, you will probably have to pay a small copayment or coinsurance amount for each prescription.