How does Medicare Part D (Prescription)Coverage work?

THis is one of those things that the government has made “simpled” under health care reform.  Get your Math Hat on, folks.  Here goes-

In 2012, you pay the first $320 as a deductible before the insurance company pays anything.

Then, for the next $2930 in Prescription Costs, you will pay 25% of the cost, or a copay, depending on the plan.

The Donut Hole begins when you and the insurance company have spent between you the $2930 after the deductible.  it ends when you have spent a total of $4700 out of your pocket.  However, while in this “donut hole” you will receive a 50% discount on brand name drugs, although the full cost of the drug will apply to the $4700.  Generic drugs will cost you a maximum of 86% of their cost while in the donut hole.

After the Donut Hole ends, you will pay either $2.60 or $6.50 per drug, depending on its category.

Got it?  Good.  thats the simple part.  Figuring out which plan to take requires a professional…