Does Medicare Offer Coverage for Prescription Medications?

Yes.

Medicare will begin offering a new prescription benefit plan known as Medicare Part D or the Medicare Prescription Drug, Improvement, and Modernization Act—starting on January, 1 2006.

Medicare Part D will offer participants coverage for prescription medications in return for a monthly premium of around $37.00, in addition to a kind of coinsurance rate designed to cover the costs of your prescriptions.

How Does Medicare Part D Work?

The essentials of Part D coverage will be slightly different from one state to the next, but in general:

• You’ll have a monthly premium of about $37.00.
• You’ll have an annual deductible of about$250.00.
• You’ll be covered for 75% of the cost of your prescriptions between $250.00 and $2,250.00.
• You’ll pay 100% of the cost of prescriptions between $2,250.00 and $3,600.00
• Medicare Part D will cover around 95% of your drug costs above $3,600.00.

It’s important to remember however, that the cost of Medicare Part D will vary to some extent based on which version of Part D you decide to participate in. There may also be a few minor differences in terms of which of your medications will be eligible for coverage, what you’ll have to pay for them, and which local pharmacies you’ll be able to use.