How to Compare Prescription Drug Plans

Choosing the best prescription drug plan can feel like navigating your way through a crazy maze. Premiums, deductibles, maximum benefits, generic medications, preferred brand name medications, and non-preferred brand name medications are terms that can be complicated and confusing when comparing prescription drug plans. However, with some research and patience, nearly anyone can understand prescription drug plans and confidently compare plans.

Instructions

How to Compare Prescription Drug Plans

• 1

  Compare the premiums of the prescription drug plans. The premium is the amount of money that you spend for the prescription drug plan.

• 2

  Compare the deductibles on the plans. A deductible is the amount of money that you must pay before the prescription drug plan will start making a contribution towards the cost of medication. Usually, a lower deductible equates to a higher premium, though this is not always the case.

• 3

  Compare the maximum benefit amounts for the prescription drug plans. The maximum benefit amount is the total amount that the plan will pay towards your medications. Usually, the maximum benefit amount is for a one-year period, typically from January to December. However, some prescription drug plans have a lifetime maximum benefit. These are important points to compare.

• 4

  Compare the co-payments for generic medications. A co-payment is the portion of the cost of the medication that you are required to pay. Generic medications are usually the least expensive form of medications.

• 5

  Compare the co-payments for preferred brand name medications. A preferred brand name medication is typically a brand name medication that is less expensive than many of its alternatives.

• 6

  Compare the co-payments for non-preferred brand name medications. A non-preferred brand name medication is usually a brand name medication that is one of the most expensive in its class of drugs. Patients that take non-preferred brand name medications usually take these medications because they and their doctors have decided that this is the best medication for their condition, despite the cost.

• 7

  Determine which plan offers the greatest benefit for the medications that are you currently taking. Also take into consideration your current health conditions and which medications that you may be prescribed in the future. Determining the best prescription drug plan for your specific situation will require you to take into consideration your current health conditions, medications and the specifics from each of the available plans to perform some cost-benefit analysis.