There
are three categories of out-of-pocket expenses associated with each Part D
drug plan: Monthly Premium, Yearly Deductible, and Co-Payments.
The Monthly Premium is the amount you pay each month to the Part D
plan for coverage. Each Part D plan has a different Monthly Premium.
On the Medicare website
you can find the cost of
Monthly Premiums of Part D plans offered in Maine.
The Yearly Deductible is the amount you pay before your coverage begins.
(Some Plans have a $0 deductible.)
This Deductible is in addition to your Monthly Premium. During the
Deductible you pay 100% of your drug costs.
A Co-payment (or Co-Insurance) is the amount you pay for your prescriptions
after you have met the Yearly Deductible amount. This will vary
depending on your total drug costs and the particular Part D Plan you are in.
Most Part D Plans have a Coverage Gap (the "Donut
Hole"). While you are in the Coverage Gap, you will be responsible
for 100% of your drug costs. In 2009 you will enter the Coverage Gap once the
total cost of your drugs reaches $2,700. (Total cost
means the amount you paid for your drugs combined with
the amount the Part D Plan paid for them.) In 2009, you will get out of the Coverage
Gap for the rest of the Plan year after you spend $4,350 out-of- pocket on
your Part D drugs. Once you are out of the coverage gap, you will pay a small
co-insurance/co-payment for your drugs for the rest of the Plan year.
