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.
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.