Seniors Face Higher Medicare Part D Costs But With Better Benefits

Word on the street is that while Medicare prescription premiums are expected to increase next year; however, there will be improvements in the benefits as well.

There is an expectation that the average monthly Medicare prescription premium next year will be about $1 more than this year, notes Alan Weinstock, insurance broker at http://www.MedicareSupplementPlans.com. But keep in mind that Medicare drug plans vary widely in coverage and costs.

Medicare Drug Changes Means Better Benefits for Seniors

Seniors with high drug costs can look forward to a noticeable improvement next year. This is because the new health care law will begin to close the coverage gap (known as the doughnut hole). Medicare recipients whose prescription coverage falls into this gap will get a 50% discount on brand name drugs and 7% on generics. The discounts will gradually increase until the gap finally closes in 2020.

While seniors in the most popular plans may see higher premiums, it’s always good news when premiums don’t grow by leaps and bounds, suggests Weinstock. The expectation is that modest increases in premiums, along with the new discounts will make medications more affordable to Medicare beneficiaries.

Keep in mind that Medicare drug plan premiums can vary greatly, from a few dollars to over one hundred a month depending on where you live and your plan choice. And this doesn’t even take into account the deductibles and copayments or whether a plan provides some coverage in the doughnut hole.

Seniors Should Check Their Own Medicare Prescription Plan

First thing that seniors need to do with their current Medicare prescription drug plan is to review their coverage and costs. Medicare’s premium estimates are based on broad measures and the assumption that seniors will enroll in lower-cost plans in 2011. Since Medicare drug plans vary widely in coverage and costs, seniors need to check their own specific plan to avoid unpleasant surprises that may not be revealed in this broad estimate.

Another step that seniors or their family members can take one which is recommended by consumer advocates is to use Medicare’s online plan finder to see which insurer provides the best deal for their individual medications.

And seniors might want to keep in mind that Medicare Advantage plans that combine prescription and medical coverage in one may be a better deal overall for some people than traditional Medicare. Nationally, about 9 million beneficiaries are getting their drug coverage through such plans.

However, if you’re a senior with traditional Medicare who supplements your coverage with a Medigap plan, keep in mind that you can always get help at http://www.MedicareSupplementPlans.com, where you have the opportunity to compare rates, plans and benefits from several prominent insurance companies.

Whatever plan you choose for your prescription coverage, be sure to do your research to be sure you get the best plan for your particular needs.