California Health Insurance News 
Articles / Seniors pleased that at last they are getting some Part D data
10/05/2005
The Part D Plans are here!
After all the speculation about what benefits Medicare Part D will cover, and how much Seniors will pay, some of the confusion is being addressed and some of the most important questions have finally been answered. In California there are several companies offering several different plans. Estimations are that there could be approximately 40 plans offered in California with different costs and different benefits.
A leading insurance company just announced one of their plans. The monthly cost will be $28.56 and here are the Medicare Part D benefits:
A senior would pay a flat-dollar amount (co-payment) or a percentage of the cost (co-insurance) for covered generic, brand or other prescription drugs, until the annual cost of prescription drug expenses reaches $2,250. These costs would include any deductible, co-payments or co-insurance. This specific plan has $0 deductible and a Senior would pay $10 for a 30-day supply of Generic Medications and $30 for a 30-day supply of Brand Name Medications.
What happens next is called the "donut hole". Any cost for covered prescription drugs between $2,250 in drug costs and $3,600 in annual out of pocket costs are to be paid 100% by the individual. In other words after the initial $2,250 in drug costs, a Senior would be responsible for the next $1,350 out of their pocket.
After the "donut hole" the cost for prescription drugs would be $2 for generic/preferred multi-source brand drugs, $5 for other drugs or 5% the drug cost...whichever is greater.
"Medicare's Part D is the most significant change to Medicare since it's inception and it could mean big savings to you". says David.A.Thau, CEO and Founder of Keep It Simple Insurance.
"At the same time, the plan benefits are confusing and seniors have to decide which plan is appropriate for their needs and find a plan that fits into their budget. There are obviously still many questions to be answered about Medicare Part D, but these too will be addressed as more and more data becomes available." he added.
