7 factors to consider in choosing a Medicare prescription drug plan

On Behalf of | Sep 23, 2024 | Medicaid/Medicare

Choosing a Medicare prescription drug plan (PDP) or Part D plan can be overwhelming. With numerous options available, selecting a plan that fits your unique health profile is crucial. An informed decision can increase your savings and ensure you get the medications you need without hassle.

Picking the right Medicare PDP requires careful consideration of your prescription, financial capacity and convenience.

Coverage and costs

Medicare PDPs vary widely in coverage and cost. Your finances could help you weigh in factors including:

  • Formulary: Plans’ formularies, or their list of medications, can differ. Make sure the plan covers the medications you currently take.
  • Tier system: Many plans use a tier system for medications. Yours may have different cost levels for generic, brand-name and specialty drugs. Understanding which tier your medications fall into can help you estimate your out-of-pocket expenses.
  • Monthly premiums: Determine if you can afford the monthly payments for your plan. While lower premiums can be appealing, they might come with higher co-pays or deductibles.
  • Deductibles: Some plans have an annual deductible. You must pay this amount out of pocket before your plan starts covering costs. Look for plans with deductibles that fit your budget.

Pharmacy network and convenience

Each plan has a network of pharmacies that can fill your prescriptions. Some points to consider when ascertaining convenience include:

  • Preferred pharmacies: Plans have contracts with network pharmacies where you can get medications at a discounted price. Check if your local pharmacy is part of the plan’s network.
  • Mail-order options: Many plans offer mail-order services for delivering medications, which can sometimes reduce costs.
  • Travel considerations: If you travel frequently, consider how the plan handles prescriptions filled outside your local area. Some plans offer nationwide networks, significantly benefiting those in different states.

In Massachusetts, there are state-specific regulations and resources that you should also examine. State pharmaceutical assistance programs can help you cover plan costs when you experience financial hardship.

Consulting an estate planning attorney may help you evaluate these factors and explore available resources. Reviewing and comparing drug plans annually is advisable to maximize your Medicare benefits.