Prescription Drug Coverage and Medicare Supplements
The need for a drug insurance policy:
According to the National Institute of Health, people aged 65 and over account for about 13 percent of the population, but represent over 33 percent of the cost of prescription drugs for outpatients in the United States. The implication is that most Medicare beneficiaries above the age of 65 will take at least one prescription drug and will need coverage for prescription drugs.
Beneficiaries of health care under the age of 65 can also apply for prescription drugs. Medical prescription coverage is not generally covered by Original Medicare (part A and part B) except you are receiving prescription drugs while you are in hospital or if on an outpatient basis, a doctor administers it, like in a clinic.
To avoid paying the majority of your prescription fees, you usually need to purchase additional coverage.
Does Medicare supplemental insurance include coverage for prescription drugs?
Medicare (Medigap) supplemental plans are generally sold by private insurance companies to people aged 65 and over enrolled in Medicare A and B parts. Medicare supplemental plans can help pay a portion of Medicare costs, such as co-payments, co-insurance, and deductibles.
Under federal law, private insurers are not required to sell Medicare supplement plans to persons under the age of 65, although some states require such plans to be sold to beneficiaries under the age of 65.
Some Medicare insurance policies have been sold, including prescription drugs. Such additional Medicare contracts can no longer be sold to the beneficiaries (however, if you purchased the drug coverage as part of a previous Medicare care plan, you can maintain it).
If you purchase a Medicare supplement policy today and wish to receive prescription drug coverage, you usually need to purchase a separate Medicare Part D prescription drug policy. You can still purchase a separate Medicare prescription drug plan D if you have a Medicare supplement policy covering prescription drug coverage, but it cannot be included in either plan. You must notify your Medicare supplement policy through the independent prescription drug plan so that coverage can be eliminated by the Medicare supplement policy and appropriate premium.
Once the coverage for prescription drug has been removed from the 2020 Medicare supplement plan, it will no longer be possible to benefit from this coverage.
Coverage for prescription drugs may also be available through a Medicare Advantage plan, but a Medicare health care plan does not work with a Medicare Advantage plan.
According to the Center for Medicare and Medicaid Services, as of April 2017, over 25 million Medicare beneficiaries were eligible for Medicare Part D prescription drug policies.
What is a separate Medicare Part D plan for prescription drugs? Medicare Part D prescription drug plans are offered by private insurance companies licensed by Medicare. Separate insurers offer different types of plans. This means that the costs of monthly premiums and prescription drugs may vary from one level to another. Each Medicare prescription drug plan includes a formula that contains a list of prescription drugs.