Dear Liz: In the past, we've discussed the pros and cons of Medicare Advantage plans and Original Medicare. I think there's one more thing I should mention to my readers. That means Part D prescription drug coverage is more expensive for people who choose Original Medicare.
For example, if you need several Tier 3 or higher-priced medications, you can easily pay more than $3,000 a year in addition to your monthly premiums.
I'm not saying Original Medicare is bad. On the contrary, it greatly expands your freedom of choice regarding your health. However, Part D is expensive.
answer: Let's start with the news that Medicare Part D's out-of-pocket maximum will increase to $2,000 in 2025. This cap applies to Part D plans purchased by people on Original Medicare and to Medicare Advantage plans that cover prescription drugs. Once you reach the cap, you won't have to pay extra for covered drugs for the rest of the year.
Please note the expression “subject drug.” Prescription drug coverage is provided by private insurance companies, and the list of covered prescriptions may change each year. Insurance plans that cover drugs this year may not cover them next year, so every year during Medicare's open enrollment period (which ends December 7th), check to see if your plan offers the coverage you need. need to shop for. If you don't shop around during the annual open enrollment period, you could end up paying significantly more than you expected.
By way of background, Medicare Advantage plans are offered by private insurance companies as an alternative to Original Medicare. Original Medicare gives you the freedom to choose any doctor who accepts Medicare, and most doctors do, but Medicare Advantage has provider networks that may not cover treatments outside of that network or may require additional charges. It may take some time. Additionally, Medicare Advantage networks and benefits can change from year to year.
Fortunately, Medicare provides services such as: Comparison tool It helps you categorize your options. Entering the medications you take and your preferred pharmacy will help you choose the best plan for your situation. Now is the time to compare plans and switch if necessary.
Liz Weston is a certified financial planner and personal finance columnist in the United States. Nerd wallet. Questions can be directed to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the “Contact” form below. askrizweston.com.
