How to Compare Medicare Part D Insurance Plans

The Part D plan that's right for you depends on your current and past drug needs. Each plan offers four different thresholds that vary the amount of co-pay and cost considerations. Choosing the right plan means reviewing your needs and understanding the cost structure, which is determined by the state and region in which you reside.

Instructions

• 1

  Understand the four basic coverage points Medicare employs to manage costs. Medicare requires an annual minimum deductible, an initial coverage limit, an out-of-pocket limit and a catastrophic limit. Prices are reviewed and changed every year.

• 2

  Review your eligibility letter from Social Security to see if you qualify for LIS (low-income subsidy). This subsidy can help you pay for Part D subscription charges.

• 3

  Find out if your current prescriptions are for generic or formulary 1 drugs. Medicare reduces Plan D costs if your prescriptions can be written in this manner. Review the list of Plan D providers who specialize in providing these drugs when choosing your provider.

• 4

  Use the Medicare Prescription D calculator (see Resources) to narrow your plan. choices by state and your current medications. Compare costs based on subscription costs plus the amount and type of drug treatments you currently use. If you're not taking any medications, you can simply choose the least expensive plan available to you.

• 5

  Enroll in a Part D prescription plan immediately upon becoming eligible during the open enrollment period, even if you do not currently take prescription medicines. Failure to do so may result in lifetime penalties when you join other plans later in life.