MEDICARE PART D = PRESCRIPTION DRUG PLANS = PDPs
PDPs help Seniors cover the cost of their prescriptions. These plans are sold by private insurance companies (“Plan Sponsors”) which contract with Medicare. In Michigan there are upwards of 25 such plans available in most zip-codes. Each Plan can cover a different group of drugs, called the Plan’s “Formulary”; and each Plan can set their own deductibles, copays and coinsurance (“cost sharing”). Furthermore, each Plan has preferred pharmacies, standard pharmacies and many pharmacies that are just completely “out of network.” All this makes it complicated to determine which plan is best for you – given your specific list of prescriptions! Fortunately, we have tools to sort through the many possibilities to determine the most reasonable one or two choices for you.
It may be wise to change your PDP every year! Personally, I’ve never had the same PDP 2 years in a row … why, you ask? Because Medicare allows Plan Sponsors to make changes to their plans each year – and those changes may NOT benefit all their members (it’s NOT just about premium changes!). Because of this, Medicare encourages Plan members (that’s you!) to look at the features and cost sharing structure of the various plans coming available for the next year – so that you can change plans for the following year if that’s appropriate for you.
The Annual Election Period (AEP) from Oct. 15 through Dec. 7 is the period during which you can make such a change for the following year if you wish to. I would be my privilege to assist you in this process!