Good Question:  Should I remain in my Medicare Part D Plan? The monthly cost of my plan is increasing nearly 300% in January 2007.  I use only $25 in prescription drugs each month. My premium will be over $25, and now that big stores are offering generic medications at discounted prices, what are the advantages of staying with a plan D prescription drug program? What happens if I decide to drop my present plan because of this insufficient use, will there be a penalty if I would then re-enroll at a later date? It seems to be a waste of money at this point.

 
Response:  This question is an important one that many people are asking. We can understand why a person would consider dropping the Part D coverage now that the generics are so reasonably priced.  However, keep in mind Medicare Part D is insurance, just like the insurance you might keep on your auto or home.  In some respects, the purpose of insurance is to cover the costs of the bad events that you hope will never happen.  Medicare Part D is a voluntary program and each person must make their own decision whether to have prescription drug coverage.  For some people it may be tempting to cancel Part D coverage altogether and save the money.  Yet, when you later need the coverage and re-enroll, you may be faced with a higher monthly premium as a penalty (increased by 1% of the national premium average per month for every month without coverage).

As we have noted to others, when you have very low prescription costs, you may wish to find a plan in your state that has the lowest cost premium and consider Part D just like any other insurance – insurance costs something even when you do not use it, but it is usually better to have insurance when you finally do need it.

Here is a link to our Plan Overview where you can look for Medicare Part D plans sorted by monthly premium costs: