While Medicare Insurance no longer covers prescription drugs, big discounts on prescriptions may allow you to drop your Part D Plan in 2011. Part D prescription drug plans will cover 74 percent of the cost up to $2,840. That limit has been raised to offer more assistance, but beneficiaries are still on their own to fund prescriptions while stuck in the dreaded “donut hole.”

The donut hole gap in coverage lasts until catastrophic coverage begins when beneficiaries have incurred $6,440 in expenses. At that point, out-of-pocket costs are capped at five percent. Health care reform will help approximately 14 percent of those trapped in the donut hole by offering discounts on prescriptions to reduce their cost.

Most brand-name prescription drugs will be available at a 50 percent discount and generic drugs will receive discounts of 93 percent. When you get a refill, prescriptions will be automatically switched to brands offering these discounts, unless no company has agreed to offer a discount.

This may be the case for a small number of prescriptions. For most beneficiaries, the much lower costs may even allow them to drop their Part D plan and save on those premiums. That makes it even more practical to get the protection of a Medicare supplement plan so you’re not at risk from Medicare’s co-insurance, co-pay and deductible charges. You can learn more about the new choices in 2011 on our website, and you may also request a free consultation to discuss your situation.
Learn more about medicare supplement insurance on our website.

Wiley Long is founder and president of Medigap Advisors, and is passionate about helping people navigate the confusing waters of Medicare. He is the author of The Medicare Playbook: Designing Your Successful Health Coverage Strategy, a clear and simple explanation so you can make the most of your Medicare coverage.