Posts Tagged ‘Medicare Part D’

How does that 50% doughnut hole prescription discount work?

Sunday, August 15th, 2010

From Consumer Reports:

Question When I filled out the Medicare prescription compare plan, I miscalculated my husband’s insulin prescription. Consequently, we reached the doughnut hole within five weeks. In 2011, we are told that we will be paying 50 percent less on name-brand drugs while in the doughnut hole.

Will the full price of the drugs be deducted from $4,550 that the feds require us to pay? Or, will it just be our 50 percent share, meaning we’ll still end up paying $4,550 in the long run? 

Answer Good news for you—it’s the former.

Here’s an explanation from our go-to experts at the Medicare Rights Center.

The 50 percent discount for brand-name drugs that will be applied beginning in 2011 will effectively shrink the $4,550 doughnut hole for you. Both what you pay out of pocket AND the 50 percent discount will count toward the $4,550.

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Healthcare Reform and Medicare Part-D Doughnut Hole Changes

Sunday, March 28th, 2010

It is no doubt that over the last week or two, you’ve read articles, watched t.v., or listened to the radio where Healthcare Reform was the main topic.  No matter what side of the fence your on, the bill has passed, and so it is important to understand how it will affect you over the coming years.  This week, we’ll take a look at how Medicare Part D or Medicare Prescription Drug Coverage will be affected.  Here is the breakdown:

  • In 2010, Medicare Part D participants who reach the coverage gap (otherwise known as the doughnut hole) will receive a $250 rebate
  • In 2011, Medicare Part D individuals who reach the coverage gap will receive a 50% discount on brand name drugs, but not until they reach the coverage gap.
  • Brand name drugs will be subsidized slightly more each year between 2011 and 2020, eventually reaching a cost sharing structure of 25% paid by the individual and 75% paid by the plan sponsor (insurance company) in 2020.
  • Generic drugs will be subsidized for those in the coverage gap starting in 2011 at a rate of 7% per year, eventually reaching a cost sharing structure of 25% paid by the individual, 75% paid by the plan sponsor (insurance company) in 2020.

Each year, 14% of all Medicare Part D enrollees fall into the coverage gap or doughnut hole. Often times, this is an avoidable circumstance and one the professionals at Rx Savings Solutions are trained specifically to deal with.  If you’re one of those people paying to much for your medications out of pocket each month, contact us at pharmacist@rxsavingsllc.com today!

Stats were gathered from the Kaiser Family Foundation.  For more information, visit their website at http://www.kff.org/healthreform/upload/8059.pdf.

Rx Savings Solutions: Your Prescription for Drug Savings!

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Posted in Drug Prescription Savings, March 2010 | 1 Comment »

Picking a Medicare Part-D Plan for 2010

Sunday, December 6th, 2009

It’s that time of year again, the holiday season is upon us and there is much to do.  If you’re over age 65 or know someone who is, remember that it is also that time of year to pick a Medicare Part-D Plan for your prescription drug benefits for 2010! 

Picking a plan is complex process, with considerations including monthly premiums, brand and generic copayments, and protecting against falling in to the dreaded coverage gap, otherwise known as the doughnut hole.   In 2007, 25% of people enrolled in Medicare Part-D plans fell into the doughnut hole and were responsible for 100% of the money for their prescription drugs out of pocket.  This amount in 2010 could be as much as $4,550!  Coupled with this are insurance ads and sales pitches from brokers that can further cloud the picture.  Instead, try using the Medicare Part D Plan Finder.  Or, you can call 1-800-633-4227 for assistance over the telephone.  These non-biased government resources give you the best chance to pick a plan that fits your needs, and keeps you from being sold something you don’t need. 

A few things to remember for picking your prescription drug plan:

1.   Use non-biased tools and resources to help pick your prescription plan and lower your out of pocket spending.  This can include government resources as well as third party resources who don’t have a vested interest in your choices, like Rx Savings Solutions.
2.  $4,550 is the amount you could be responsible for out of pocket if you hit the coverage gap or doughnut hole.  This happens after the $2,830 of initial coverage shared between you and your prescription drug plan is exhausted.
3.  Avoiding the doughnut hole by lowering your prescription costs at the begining of the year is a good way to start.  Talk with your doctor about using our prescription drug list for cost savings on some of your brand name medications.  Or, employ the Rx Savings Solutions team to make the suggestions for you, and find you the lowest prices on all of your prescription medications!

Remember to take some extra time to do the research and choose wisely now!  You’ll be happy you did!

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