What is Medicare Part D?
- How do I afford health care in retirement?
- What is Medicare?
- Who pays for Medicare?
- What is Medicare Part A?
- What is Medicare Part B?
- What is Medicare Part C?
- What is Medicare Part D?
- What is Medigap insurance?
- Which Medigap policy should I buy?
- Where can I learn more about Medigap?
- What is Medicaid?
- What does Medicaid cover?
- Should I get long-term care insurance?
- How can I tell if a nursing home is a good one?
- Will my health coverage be affected if my spouse dies?
Medicare Part D provides prescription drug coverage. It is actually a separate policy you buy from a private insurer.
Each private insurer has its own plan, but the general rules work like this: You pay a monthly premium for Part D coverage and may also have an annual deductible of no more than a few hundred dollars a year, if there is any deductible at all. Once you cover the deductible, your plan will then pay some - or all - of your drug costs, but only for the first $2,510 in total drug costs per year.
Once you hit $2,510 you are officially in donut-hole land. You do not receive any prescription drug coverage for annual costs that fall between $2,510 and $4,050. That's right: You pay 100% of costs that fall within that dollar range. Once your annual costs push past $4,050 you fall back into the land of the covered: you will pay just 5% of costs above $4,050 with Medicare picking up the other 95%.
