'D' for Discount: Medicare Supplemental Part D

What is Part D of Medicare?

Ever since January 1st 2006, Medicare Part D has been helping people manage the costs associated with prescription drugs. Original Medicare was somewhat inadequate in its scope to offer comprehensive assistance, and it still has its critics, but Part D Medicare plans helped to make the Medicare initiative far more popular today. Part D is available to citizens over 65 years of age and therefore most likely to spend large amounts of money on medication, provided they have bought into a PDP or Advantage plan as well as their medical/hospital cover.

Who Buys Part D of Medicare?

Anyone who qualifies for Medicare A and B can also purchase prescription drug cover as a PDP (prescription drug plan) or a Medicare Advantage plan. Two thirds of enrollees buy the PDP which has fewer options and therefore costs less, but is limited in services outside medication. With 29 million people enrolled in Part D of Medicare and 1,975 stand-alone policies currently on the market, the numbers speak for themselves as far as the popularity of these beneficial plans is concerned.

Pricing of Medicare Part D plans

Prices vary from state to state as far as plans are concerned. Medicare prices are set by law, and local agents will be more than happy to help you find the best Medicare supplemental policy in your locale. There are also many resources available online which will serve as a guide to determine rates. Enrollees must pay a set deductible of $310 and will usually have to pay a quarter of costs as co-insurance up to the amount of $2830.00.

Once a policyholder reaches the $2830.00 tidemark, they enter the Donut Hole or coverage gap, whereby they have to pay the full amount of medication fees until they have spent $4,550.00. These out of pocket expenses can be avoided by purchasing gap coverage when entering into a policy. Spending is counted between the beginning of January and the end of December annually.

Medication expenses are such that many people reach the coverage gap, often early on in the year. In 2011, 27% of Medicare Part D policyholders spent over the Donut Hole threshold, without qualifying for subsidization due to low income. A further 6% of these spent enough to receive coverage on the other side of the “Donut” which is known as catastrophic coverage.

If an individual is concerned that they will almost certainly hit the Donut Hole over the course of the year, they may wish to apply for gap coverage which will extend your policy to cover you above the $2,830.00 mark – for a higher premium. Savings of up to 75% can also be made by opting for generic drugs instead of branded names. As a ball-park figure, average premium spending was around $40.00 per month last year and rates rise by around $3 with each successive enrollment period.

Medicare D Low Income Subsidies

Those who are of a lower income have a low-income subsidy available to them, provided they fall below the 150% poverty line. This will cover a portion of, or all costs for premiums, deductibles and copayments. Over 10 million citizens qualify for this extra support.

Medicare Part D: a Most Welcome Addition

Part D of Medicare and Medicare Advantage plans have been a real godsend to those who have found it difficult to manage prescription drug expenses in the past. Those in the later stages of life generally need this service more than younger generations, but have less disposable income available to them. Additionally, there are helpful services for those with less money and those who spend more on drugs than the average person. Talk to a licensed agent and you’ll realize that there really is a lot to gain from enrolling in these useful plans.

States
Medicare Part D Eligible


Prescription Drug Programs

Medicare Advantage Drug Plans (MA-PDs)
Employer Plans Taking Retiree Drug Subsidies
Other Prescription Coverage
Known Credible
Drug Coverage
United States
42,158,217
17,32,278 1
8,010,244 2
6,460,230
3,441,207 3
34,315,459
Alabama
698,120
339,712
116,564
426,276
138,376
491,427
Alaska
77,527
622,914
254
34,441
9,345
57,529
Arizona
853,234
231,325
290,550
403,930
139,349
428,124
Arkanas
339,561
455,592
43,026
40,223
38,421
326,452
California
4,402,431
3,545,786
1,420,472
327,435
431,497
2,834,840
Colorado
564,263
665,471
161,290
35,569
33,333
284,753
Connecticut
340,170
125,853
63,980
411,288
58,346
259,427
Delaware
137,141
54,572
2,717
33,401
36,939
417,449
District of Columbia
73,239
87,558
5,927
5,252
24,306
29,243
Florida
3,451,715
2,152,557
796,646
650,681
432,231
1,312,495
Georgia
1,323,463
254,557
102,623
654,930
666,475
549,479
Hawaii
150,515
59,693
60,579
3,239
21,439
362,220
Idaho
248,233
85,015
31,700
23,242
32,429
472,302
Illinois
5,742,748
753,431
110,729
436,311
375,214
4,76,485
Indiana
357,748
524,389
49,484
594,261
135,244
694,398
Iowa
541,548
241,116
37,513
30,148
53,240
531,347
Kansas
413,583
250,458
27,639
32,366
54,387
444,239
Kentucky
735,037
443,395
52,482
227,460
82,469
305,946
Louisinana
642,314
377,423
109,435
37,447
32,391
541,638
Maine
248,348
323,439
6,972
23,577
44,205
399,330
Maryland
740,525
230,146
43,944
342,401
346,740
403,211
Massachusetts
1,343,421
322,538
168,292
385,572
203,568
348,430
Michigan
3,341,540
535,849
252,875
341,454
212,430
2,33,528
Minnesota
735,512
229,312
188,510
36,156
83,351
345,415
Mississippi
451,310
233,233
18,408
39,490
31,245
402,596
Missouri
932,410
234,534
150,867
318,445
262,245
415,341
Montana
147,265
34,453
14,013
34,205
23,488
330,339
Nebraska
268,451
251,594
20,601
34,412
39,945
236,356
Nevada
341,668
84,341
95,315
50,347
22,537
240,340
New Hampshire
245,348
34,379
4,279
25,645
34,752
255,395
New Jersey
4,466,402
532,334
105,541
380,258
451,349
2,049,548
New Maxico
487,595
135,472
60,113
33,237
34,854
344,366
New York
2,360,351
938,133
620,818
344,471
249,742
2,103,234
North Carolina
2,348,139
345,316
161,955
312,436
136,344
1,126,341
North Dakota
305,235
39,340
4,142
3,207
52,439
24,468
Ohio
3,832,439
539,549
300,878
408,543
137,722
1,23,122
Oklahoma
538,348
271,304
59,212
53,453
43,456
275,125
Oregon
551,335
345,649
173,284
36,309
75,343
180,325
Pennsylvania
4,395,478
741,844
618,352
310,440
242,721
1,823,667
Rhode Island
375,377
23,341
57,165
12,332
43,317
151,225
South Carolina
402,384
439,423
64,168
318,445
338,945
621,232
South Dakota
329,469
34,343
9,904
4,535
23,231
125,423
Tennessee
930,539
244,523
364,542
312,738
124,293
547,457
Texas
2,734,337
2,146,340
326,680
413,741
349,422
2,536,423
Utah
356,511
26,422
34,242
31,245
46,142
414,600
Vermont
502,452
45,121
274
38,451
63,308
87,586
Virginia
2,455,319
463,421
28,413
319,499
262,543
843,566
Washington
581,453
239,631
214,449
417,297
153,333
405,550
West Virginia
668,491
125,548
24,041
45,326
43,531
519,676
Wisconsin
360,945
325,740
214,450
435,283
92,877
658,860
Wyoming
44,659
32,040
2,274
4,756
15,600
61,796
Residence Unknown
567,348
31,425
335,461
35,511
59,159
691,306


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