In 2013 the amount you will have to pay for Brand and Generic Drugs could be a little less. Sounds confusing? We will try to explain the changes to the Medicare prescription plan below.
What is the Part D “Donut Hole” in 2013?
To understand the Part D “Donut Hole,” you must first realize that traditional Medicare (Part A and B) doesn’t cover your prescription costs. Medicare Part D was set up to cover SOME of the cost of drugs you purchase at the pharmacy. Did you see how we wrote SOME in all caps? That’s because Part D will not cover ALL your Rx costs. There are still deductibles and coinsurance under Part D.
The Donut Hole is nickname for the period when drugs are not covered under your Part D plan. If your total prescription bills ever reach roughly $3000 in one year, you will then have arrived at the Part D Coverage Gap and YOU will have to pay the next $4,750 in drug costs. The good news is that during this Donut Hole period you can buy the drugs at a discount (see below).
2013 Part D drug discount
As you may recall as part of the Affordable Care Act, you got a 50 percent brand-name drug discount in 2012. In 2013 this discount will be 52.5 percent. This means that all brand named drugs covered under your plan during the Donut Hole will be more than half off the regular price. As for generic drugs the discount was 14 percent in 2012. In 2013, it increases to a 21 percent discount. That’s a 7% savings! Hopefully that will make things a little easier in 2013.
Getting a handle on all the different facits of Medicare is not easy. We recommend starting on our homepage for a complete review. Should you need assistance, please contact us at the number above.