There are a few ways to switch your Medicare Part D drug plan. If you are not happy with your current monthly costs, covered medications, and out-of-pocket costs you’ll want to consider these options for changing your plan.
Ways to Change Drug Plans
The two main ways to switch to a Medicare Prescription Drug Plan are:
Medicare Part D AEP Open Enrollment
Anyone can enroll in a Medicare drug plan during the Annual Election Period open enrollment: Oct. 15 to Dec. 7th. This includes those that have a current drug plan, those who have Medicare Advantage with a drug plan attached and want to switch out of that plan, and those who have not enrolled during their initial period.
If you didn’t enroll in your initial Part D enrollment you may be subject to a penalty.
Part D 5-Star Special Enrollment
You can also switch your plan during the 5-Star Special Enrollment. If you are unhappy with your drug plan you can change to a different Medicare Part D plan with a 5-star rating. You will only be able to do this once per year.
How to switch to the best Medicare Part D plan
1) Compare Drug Coverage
While many people focus on the Part D monthly cost (called premiums), the first thing you want to review is the plan’s covered drug list. Each plan has a list of covered medications called the “formulary” and each list can vary dramatically from plan to plan.
The companies can change the formulary list during the year so it is important to make sure the drugs you are currently taking are still covered under your existing plan and compare it to new plans.
2) Compare Monthly Costs
If you are paying significantly more than this you will want to shop around. New plans often are priced less expensive than older popular plans so make sure you look into some of the brand new plans that are offered each year. While your monthly cost is very important, see point 3 below to learn why going with the cheapest plan isn’t always the best idea.
3) Compare Deductibles
If you have narrowed down a few plans that cover the drugs you are currently taking, you will also want to examine the deductible cost. Each Medicare Part D plan is allowed to charge deductibles. Many Part D plans waive or reduce this deductible, so compare what your current plan is charging with the new plans available. Plans that remove this deductible will often cost more each month. Therefore you’ll want to do the math and see if a no deductible plan is worth paying a little more for. For example, a plan that costs $25 more each month could actually save you money if there is no deductible attached.
4) Compare Copayments at different pharmacies
Some plans also reduce the amount of copayments you may have to pay. You’ll want to compare copays for different drug tiers to see which plan is actually right for you.
π‘ Note: While we donβt enroll clients in Part D, weβve created a guide to help you do it yourself. Our Medigap team is still here for you.