Prescription Drug Plan Basics
Monthly Premium: Every prescription drug plan has a monthly premium that you can pay by check, automatic bank draft, or automatic deduction from your social security check.
Deductible: Some prescription drug plans have a $310 calendar year deductible. These plans tend to have lower monthly premiums and lower co-payments. However, plans with deductibles can be unattractive for people who turn 65 late in the year as the deductible re-sets every year on January 1st.
Co-payments: Every prescription drug plan available will have different co-payments for different prescriptions. Furthermore, some plans will have preferred pharmacies that will offer lower co-payments for select plans.
Formulary: Different prescription drug plans have different drug formularies and can cover medications that other plans may not. However, all plans are required to offer coverage for prescriptions in every therapeutic category.
Star Ratings: The Center for Medicare Services assigns star ratings to each plan giving consumers the ability to identify high performing plans from under-performing plans.