About AARP Prescription Drug Plans

As of 2003, the United States Congress passed the Medicare Prescription Drug Improvement and Modernization Act, a benefit program that requires Medicare to pay a portion of prescription drug costs for seniors. The benefit provides for outpatient prescription drugs and is only available through a third party insurance provider.
The AARP prescription drug plan is one of many third party prescription plan coverages you can get to help reduce prescription costs. Through partnering with UnitedHealth Insurance, an AARP-branded prescription drug plan is available for seniors looking to enroll under Medicare Part D. The following is an overview of the AARP MedicareRx coverage.

The Facts

• The AARP prescription plan is also known as the AARP MedicareRx Plan. As long as you're eligible for Medicare Part A or enrolled in Medicare Part B, you qualify for the AARP MedicareRx Plan.
  All third party providers offering Medicare Part D must meet the requirements set by the Centers for Medicare & Medicaid Services (CMS). UnitedHealth is an approved third party provider so you won't run into any problems there.
  The UnitedHealth plan offers an AARP "brand" of Medicare Part D prescription coverage. An individual membership with AARP is not required to obtain coverage from UnitedHealth.
  The program is administered across specific regions of the United States, or coverage areas, each of which may offer different plan benefits depending on state regulation requirements. The program also provides a listing of drugs covered under the plan according to drug types or tiers. Oftentimes, drug type will determine the overall cost involved for a particular prescription.

Benefits

• Benefits under the AARP MedicareRx plan include a network of 60,000 participating pharmacies; discount mail order prescription services; additional assistance for low income beneficiaries; discounts on FDA-approved prescriptions; protection against rising prescription costs; fixed copays; and three available plan options.

Time Frame

• There are certain time periods in which you must enroll in the AARP MedicareRx plan, or else pay a penalty fee that will apply throughout your coverage period. As of your sixty-fifth birthday, you're eligible to enroll in the plan.
  This initial enrollment period spans from three months prior to the month of your sixty-fifth birthday until three months after the month of your sixty-fifth birthday, so you have a seven month window for enrollment. If for some reason you're unable to enroll during this time, there is an annual enrollment period that runs from November 15 to December 31. The annual enrollment period is also the time to make any plan changes.
  Special enrollment periods are available under certain, approved circumstances.

Risk Factors

• One thing to keep in mind when choosing your plan are the options available within your coverage gap period. The coverage gap occurs when you've met the $2,510 limit for yearly drug costs.
  Once this limit is met, you are responsible for all of your prescription drug costs until a $4,050 out-of-pocket cost is reached. Once the $4,050 out-of-pocket cost is met, you're original coverage will resume.

Type

• There are three levels of coverage you can choose from under the AARP prescription plan: AARP MedicareRx Save, a low cost plan that includes a $275 annual deductible, monthly premiums and copays; AARP MedicareRx Enhanced, the most costly plan with a more inclusive drug list than the standard Medicare Part D listing and additional coverage gap protection; and AARP MedicareRx Preferred, which costs a bit more than Rx Save, but less than Rx Enhanced, with fixed copays and no deductible.
  It's always best to do careful research when deciding on any type of insurance coverage. With the rising costs of health care, a little research may save you a lot money in the long run.