Medicare Prescription Deductibles: What You Need to Know
January 13, 2022 | Tom Peterson
When comparing Medicare Part D plans, it’s important to consider all the details. Medicare prescription deductibles are one of the factors that will impact the overall cost of your plan. Here’s what you need to know about Part D deductibles.
Common Questions about Medicare Prescription Deductibles
What is Medicare Part D and Why Do I Need It?
Original Medicare includes hospital (Part A) and medical (Part B) coverage. It does not include coverage for prescription medications. Therefore, if you’re on Original Medicare but need drug coverage, you may want to consider a Part D plan.
Medicare Part D is a prescription drug plan in which you buy Part D coverage from a private insurance company that has a contract with Medicare. Read more about Medicare Part D here.
(Note: Some Medicare Advantage, or part C, plans include prescription drug coverage. Learn more on our blog.)
What is a Prescription Deductible?
A deductible is a preset amount that you must pay out of pocket before your insurance will pay for covered products and services. If your Medicare prescription deductible is $200, for example, you will pay for your medications in full until you reach $200 in total spending. Then, your Medicare Part D plan will move into the next coverage stage, where you will have cost-sharing in the form of copays or co-insurance.
What is My Medicare Prescription Deductible?
Medicare drug plan deductibles may not exceed $480 in 2022. Aside from that upper limit, there’s no standard deductible amount. Deductibles vary among different plans, and some Part D plans have no deductible at all.
How Do I Choose the Best Part D Plan for Me?
If you’re having trouble understanding your deductible or other Medicare Part D plan details, Twin City Underwriters can help! Schedule an appointment with one of our insurance agents or attend a free informational webinar to get your questions answered.
Choosing a Medicare plan can be difficult. Working with an insurance broker can help you find a plan that fits your needs. Schedule a one-on-one meeting with one of our Minneapolis insurance brokers to get your insurance questions answered!
This is an updated blog post that was originally published in 2020.