The Advantages of Medicare Part D

Medicare Part D, also known as Medicare Prescription Drug Coverage, is a federal United States program intended to expand access to prescription medications. This program is intended for citizens, especially elderly, disabled or retired citizens, who receive medical coverage through the federal Medicare program. The Medicare Part D program was enacted by the U.S. Congress in 2003 and went into effect in 2006.

Costs

• Generally speaking, Medicare Part D saves patients money on prescription drugs. Medicare Part D comes with an additional premium paid monthly by the patient---approximately $35 per month as of 2010. In return it covers the costs of prescription medications up to a certain level---about $2,700 as of 2010---and after deductible expenses---$295 as of 2010.

Assistance

• There are assistance programs available for low-income people who cannot afford the premium costs or deductibles. Such programs are usually organized through the state level and are dependent on various criteria such as total annual income and number of dependents.

Out of Pocket Threshold

• Prescription drug coverage is only covered by Medicare Part D up to a certain threshold, which is $2,700 as of 2010. Medications beyond that amount must be paid for by the patient. However, after another threshold, Medicare Part D will again cover all prescription medications without any cost limitation. That secondary threshold is $4,350 as of 2010.