A New Year, A New Drug Deductible

If you’ve previously had drug coverage on your Medicare plan, you may be familiar with the concept of a drug deductible. Not all plans have drug deductibles, but plans that do begin calculating the deductible at the beginning of each calendar year. The amount of the deductible may also change from year to year.

What is a Drug Deductible?

A drug deductible is the amount of money you pay for certain medications before your plan begins to cover the cost. Depending on the type of plan you have, deductibles are primarily understood as the amount of money you must spend out of pocket before your insurance kicks in. After you reach your deductible, you usually pay a flat rate (copayment) or percentage (coinsurance) of the medications.

How Much is My Plan’s Deductible?

The highest Medicare drug deductible in 2020 is $435. However, many plans (both Medicare Advantage plans and stand-alone Prescription Drug Plans) have lower deductibles available, and some plans have no drug deductible at all!

At RetireMEDiQ, we offer a variety of plans to ensure every client finds the right plan for their needs. Each plan is different, which means that your payments could be different from a friend or relative. If you would like to better understand your deductible, please contact our team and we will review your plan with you.

Does the Deductible Apply to All Medications?

In some cases, the deductible will apply to all medications. But it is very common for the deductible to apply only on certain drug tiers. In these situations, lower-cost medications will often be exempt from the deductible. The deductible usually applies to more expensive medications, such as tier 3, 4, or 5 medications.

A Few Facts About Deductibles

  • Medicare plans function on annual cycles, so plans restart every January.
  • Medicare plans may change from year to year, including the plan’s deductible amount.
  • At the beginning of each year, you must satisfy your plan’s deductible, if it has one.

We’re Here to Help!

Please reach out to our team at 1-877-222-1942 or client@retiremediq.com if you have questions about your plan. If you are not currently a RetireMEDiQ client and have questions about your Medicare plan options, please contact us at 1-866-600-5638 or advice@retiremediq.com.

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