Significant changes to Part D Prescription Plans:
• The initial deductible for Part D prescription drug plans increases by $40 to $360 in 2016.
• In 2016, Part D plans’ temporary limit on what a particular plan will cover for prescription drugs, also known as the “donut hole”, will begin after you spend $3,310 on covered drugs. It will end after you have spent $4,850 out-of-pocket, and catastrophic coverage kicks in.
–The Affordable Care Act, however, reduces out-of-pocket costs for prescriptions purchased in the coverage gap, so in 2016, you’ll only pay 40% of the cost for brand-name drugs and 58% of the cost for generic drugs purchased in the coverage gap.
–Each following year until 2020, out-of-pocket prescription drug costs in the coverage gap will decrease until you hit 25% of the cost for both brand-name and generic drugs in the gap.
Open Enrollment
The Medicare open enrollment period is going on now through December 7. If you need to make changes to your coverage or choose a different plan that works better for you, now is the time. All changes made during open enrollment will take effect January 1, 2016.
For more information, visit www.medicare.gov.
