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What is Part D Medicare?

by Admin on March 14, 2012


here are three main types of health insurance coverage. There is hospital insurance. This covers the costs such as room, board and nursing care, you incur when staying in an inpatient care facility. The second type of coverage is medical insurance. This pays for your doctor and any medical treatments or surgery you required. Finally, there is prescription drug coverage. This defrays the cost of your medications.

Medicare Part A is hospital insurance. Medicare Part B is medical insurance. Medicare Part D is prescription drug insurance. You receive Part A automatically if you, or your spouse, have paid Medicare taxes. Part B and D are optional coverage. You can choose not to have them. You pay a monthly premium for part B, and a separate monthly premium for Part D.

Part D Medicare is the drug coverage portion of the Medicare program. Even though it is optional, you are strongly encouraged to enroll as soon as you are eligible. There is a late enrollment fee and guaranteed higher premiums.

Medicare Part D does not fully cover your drug costs. Before you can receive any benefit, you have out-of-pocket expenses. Every year, you must meet a deductible. That is, you must pay at least the deductible amount for your medication before you receive any benefit from the insurance policy.

Then the benefit is still limited. You will be responsible for co-pay. This is the amount you give the drugstore when you pick up the prescription. The co-pay varies from plan to plan. Some plans have a fixed amount. Other plans use a percentage.

The costs do not stop there. After your plan has paid to a certain limit, they stop paying. You have to pay the total cost of the medication again. You continue to have this out-of-pocket expense until you reach the catastrophic coverage limit at which time you receive benefit again.

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