Health care costs are a big expense in retirement and prescription drugs often top the list.
Department of Health and Human Services.
Early retirees can utilizeprescription discount cardsand apps like GoodRx to save money on medications.
Need a refresher on how Medicare works? Check out answers to thesefrequently asked Medicare questions.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
What Is Medicare Part D?
Theres also hundreds of Medicare Advantage plans with prescription drug coverage available at the local level.
How Much Does Medicare Prescription Drug Coverage Cost?
Changes go into effect the following Jan. 1.
Generally, plans with lower premiums have higher deductibles.
These plans typically come with high deductibles.
So can the copayment or the amount you pay out of pocket for each covered drug.
Medicare Part D plans also have preferred pharmacies.
If you go to an out-of-web link pharmacy, youll pay more for your medications.
Private insurance companies regularly tweak their formularies, often at least once a year.
Thats why its so important to review your Medicare Part D coverage each year.
Medicare formularies typically group medications into different tiers based mostly on cost.
A plans formulary usually has three to five tiers.
Generally, the lowest-tier drugs are the cheapest.
Generic medications fall into the first tier.
The highest-tier drugs are usually specialty brand name medications.
These drugs carry the highest out-of-pocket cost.
Heres how it works.
Logging in or creating a Medicare account is the most convenient way to use the Medicare Plan Finder Tool.
Plus, you’ve got the option to get details about the plan youre currently enrolled in.
CMS has this helpfulstep-by-step videoon how to use the online Medicare Plan Finder Tool.
Here are five ways it’s possible for you to potentially lower your Medicare drug costs.
This federal program helps pay your Medicare prescription drug plan premiums, annual deductibles and copayments.
Extra Help can significantly reduce your out-of-pocket drug costs.
Its estimated to save enrollees about $5,100 per year.
you’re able to complete the Extra Help applicationonlineor by calling the Social Security Administration at 1-800-772-1213.
Patient Assistance Programs
Patient assistance programs can offer free or discounted medications to those who qualify.
These programs are administered by pharmaceutical companies.
Eligibility for each program is based on several factors including your income level, medical insurance status and location.
Medicare has aconvenient tool you might useto find pharmaceutical assistance programs.
Thelow-cost insulin programlaunched in early 2021 and over 2,150 Part D plans now participate.
For detailed enrollment information,check out this guidefrom the Association of Diabetes Care & Education Specialists.
However, you canuse GoodRx as an alternative to Medicare.
This could help you save money on your prescriptions in certain situations.
Then present the GoodRx coupon on your phone to receive the discount.
State Prescription Assistance Programs
Some states offer prescription assistance programs that Medicare beneficiaries can sign up for.
To see if your state offers a drug assistance program, usethis search feature on Medicares website.
Keep in mind these programs are often limited.
When we checked, most states only offer one or two programs.
Where Can I Get Help Picking a Part D Plan?
Finding the best Medicare Part D plan for your budget can be time consuming and confusing.
All SHIP advice and counseling is completely free.
To get started, call your statesSHIP information line.
Click SHIP locator on the organizations home page for a list of each states phone number.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
