How to live with the Medicare Part D plan that you have selected.
Perhaps one of the greatest challenges - after selecting the "optimal" Medicare Part D plan - is to prepare or budget for the use of the plan.
Many Seniors appear to have developed a budget with respect to their medication costs - allocating a certain portion each month for prescription costs. For some people, the new Medicare Part D may take additional planning because the prescription costs (depending on the plan) may vary greatly from month, simply due to their choice of Medicare Part D coverage.
, let us assume that someone has selected a Medicare Part D plan with a $15 per month premium, a $480 deductible and 25% Co-Insurance (you pay 25% of the retail price of drugs) and their average monthly retail cost of medication is $479. Their monthly costs would be as follows:
January: $15 (premium) + $479 (medication costs toward deductible) = $494 total costs.
Feb-Sept: $15 (premium) + $119.75 ($479 RX costs * 25% co-insurance) = $134.75 total monthly costs
Oct-Dec: $15 (premium) + $119.75 ($479 RX costs * 25% co-insurance -- you receive the 75% Donut Hole drug discount
.) = $134.75 total monthly costs.