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Problems with Medicare Part D

Medicare is a government health insurance program for senior citizens. It is funded by the taxes that the government withholds from every employee's paycheck. Once you reach retirement age, the government automatically enrolls you in the program. Not every type of Medicare coverage comes as a benefit for these tax funds, however. The Medicare Part D prescription drug plan is a benefit for which you must pay monthly premiums.

  1. Monthly Premiums

    • If you are enrolled in Medicare Part D, the government helps to pay your prescriptions at the pharmacy of your choice. However, the first problem you will encounter with Medicare Part D is that you actually need to pay monthly premiums in order to receive its coverage. This program's objective is to help seniors to get access to medicine that would otherwise be too expensive. Though this can certainly be a significant benefit, if you are living on very limited funds, even paying the monthly premium can be a burden.

    Coverage Amount

    • Another big problem you may have with Medicare D is that it does not cover every type of medication. In some cases, it does not cover medicine that is unusually expensive. Your coverage is also determined by a yearly deductible that will vary according to the type of plan you choose. (There are several plans from which you can choose.) As of 2010, this limit amount is an average of $2,830. Once you reach this limit, Medicare will stop paying for your prescription drugs, and you will have to pay the remainder of your prescription costs with your own money. Once you have paid in excess of $4,550 with your money, Medicare will start helping you again. If you do not have enough money or if you are under a strict treatment, this can be very hurtful to your financial situation and to your health.

    Enrollment

    • Another problem with Medicare Part D is its enrollment period. You become eligible for Medicare D three months before you turn 65. There is an enrollment period that starts when you become eligible and ends three months after you turn 65. You also need to be enrolled on Medicare A and B to be eligible. If you do not enroll in Medicare Part D during your enrollment period and you choose to do so later, you will have to pay a penalty of 1 percent of your premium every month. You can avoid this problem by enrolling at the proper time. However, even if you did not need this coverage once you became eligible but years later you are in need of it, you still have to pay the penalty.

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