Medication costs can make up a large part of peoples’ budgets, but a few simple steps can easily save hundreds of dollars a year. The biggest single cost-saver? Picking the right Medicare plan. Whether you’re preparing for Medicare fall open enrollment or signing up for Medicare for the first time, you’ll want to make a careful selection so you don’t end up spending more than you need to. Asking your doctors a few key questions — such as, “Is there a generic?” — can save you a bundle.
First, focus on choosing the right prescription drug plan, which depends in part on which medications you take. The majority of individuals are enrolled under Original Medicare, which includes hospital insurance (Medicare Part A) and medical insurance (Medicare Part B).
Getting prescription drug coverage requires one of two additional extra steps. Beneficiaries can either get prescription drug benefits via a private insurance plan regulated by the government, under what’s called a stand-alone Medicare Prescription Drug Plan, or they can get prescription coverage bundled with a Medicare Advantage Prescription Drug plan. For a Part D plan, members will pay between about $20 and $84 a month in premiums for 2018, depending on plans and regions, according to the nonprofit Kaiser Family Foundation.
Medicare Advantage, or Part C, offers an alternative way to get your Original Medicare benefits and often provides prescription drug coverage as well. It’s essentially a way to get Medicare parts A, B and D all lumped into one. Medicare beneficiaries can enroll in a Medicare Advantage plan to receive their benefits in a private health plan, like a health maintenance organization. Across all Medicare Advantage plans with prescription drug coverage, the average premium is $43.48 per month, according to the Kaiser Family Foundation. Consumers should evaluate on an individual basis whether this is the best option. Depending on your prescriptions and other health care needs, Medicare Advantage may or may not be better for you than Original Medicare.
[Read: Medicare vs. Medicare Advantage: How to Choose.]
Comparing stand-alone prescription drug plans or Medicare Advantage plans can feel overwhelming. There are several free, simple tools online that can help you wade through the options with no obligation to enroll. One tool, PlanPrescriber.com, could save users an average of $961 a year by helping them find the right prescription drug plan, according to a study the company conducted during the 2013 Medicare enrollment period. The study analyzed 22,000 users who entered their then-current prescription drug plan and at least one prescription they were taking. The average savings were calculated by subtracting the estimated current cost an end user was paying for prescription medications and insurance (if any) from the cost for the same medications offered by the plan that presented the highest amount of savings to the end user, as calculated by the PlanPrescriber Medicare insurance plan comparison tool. (Disclosure: U.S. News has a revenue-generating agreement with eHealthInsurance, which owns PlanPrescriber.)
Another tool is available through the federal government at Medicare.gov, which, like PlanPrescriber, allows users to compare up to three plans at a time. The main difference: PlanPrescriber CEO Ross Blair says using his site’s tool takes seniors an average of three to four minutes versus about 15 minutes on Medicare.gov. Users can also talk to agents over the phone.
ExtendHealth.com is another option, especially for people who may be uncomfortable submitting their information online. Though the tool also allows you to do a web search and compare up to five plans at a time, the company has 1,200 advisers during enrollment season who can help you over the phone, says Bryce Williams, the company’s former CEO.
These three websites will also allow you to see prescription drug pricing by pharmacy based on your location. Note that each pharmacy can charge a different amount.
Regardless of which Medicare plan you settle on, keep these other money-saving tips in mind.
[See: 10 Things You Need to Know About Medicare.]
Have Prescriptions Delivered
For medications you take regularly for a chronic condition, opt for the convenience and potential cost-savings of mail-order. In addition to sparing you unnecessary trips to the pharmacy, mail-ordering can sometimes include a 90-day supply at a reduced cost, depending on your insurance company and what kind of medications you need. Once you enroll in an insurance plan you should be able to go to that insurer’s website to get your prescriptions delivered, or you can do it over the phone. Be sure to ask your doctor whether he or she needs to sign off on a 90-day supply. And take care to order refills before you need them so there isn’t a gap of time when you don’t have any pills. Also beware of illegal pharmacies on the internet, which can pose a serious danger by sending you fake or incorrect prescriptions. Legitimate pharmacies will ask for a faxed prescription from a licensed doctor and a detailed medical history. They will also clearly state their payment, privacy and shipping fees, according to FBI warnings.
Go Generic
Ask your doctor if this is an option. The brand-name version of the medication you take may be significantly more expensive than the generic form, if one is available. For example, simvastatin is the generic version of the drug Zocor, which is prescribed to control elevated cholesterol.
[Read: Behind the Window: What Pharmacists Do.]
Enroll on Time
The Annual Election Period is from Oct. 15 to Dec. 7, with changes taking effect Jan. 1. You can enroll as long as you have Original Medicare, Part A and/or Part B coverage, and there are also special enrollment periods when you move or become eligible for Medicaid.
Though Medicare Part D coverage is considered voluntary, you must be getting prescription drug coverage that pays at least as much as Medicare’s standard Part D prescription drug coverage. If you do not, you can face a penalty fee that grows each month you delay enrollment. Beware: If you are receiving another credible form of prescription drug coverage, you may actually end up spending more if you sign up for a Medicare Part D plan. This applies to members of the Federal Employee Health Benefits Program, TRICARE (military health benefits) and Veterans Affairs. If you are an active worker on an employer plan, you will want to talk to your human resources department to make sure you understand all your options.
Some Prescription Drug Finding Tools
Medicare.gov
The federal government’s site, Medicare.gov, helps users sift through different health plans and compare them three at a time, side by side.
The tool will allow you to do a general search by entering your ZIP code information, or farther down on the page you have the option to do a more specialized search. A questionnaire will ask how you pay for Medicare, then prompt you to enter your prescriptions. You have the option of entering the full name of your medications or selecting the first letter to scan a list of medication names.
Once you’ve entered all your prescriptions, you can indicate the pharmacy you want to use and continue to your plan results.
Phone numbers to call about enrolling in the plans will be provided, though some companies will also give you the option to enroll online.
PlanPrescriber.com
PlanPrescriber mainly differs from Medicare.gov in the amount of time it takes for a user to go through the search process.
This is mainly because the starting questionnaire is shorter, but its prescription drug-finding tool is also simpler. Instead of asking users to enter the full name of the medication, the system will request only the medication’s first three letters. Once the letters are in, the medications have been narrowed down and a clickable list of options appears directly underneath the letters.
You can select your dosage, and then you will be taken to a comparison screen. A prompt will ask you whether you would like a licensed insurance agent to call you and help you sort through the Medicare health plan options. If you decide you want to continue browsing options yourself, you will be able to compare plans in a separate tab, three at a time.
ExtendHealth.com
Extend Health, owned by human resources consulting firm Towers Watson, entered the consumer market during the last Medicare Annual Election period, but the company has been helping individuals find prescription drug plans for about eight years through its relationships with employers. Extend Health has partnered with Fortune 500 companies, including Chrysler and General Motors, to reach employees. If you belong to a company that works with Extend Health, your employer may mandate that you work only with this broker.
The process is simple, though. Beneficaries receive a mailer, which asks them to select a date and time that they would like an adviser to call them. They can also go through the process online, and compare up to five plans against one another. The company invests heavily in setting up people with brokers over the phone. The conversations will last an average of 23 minutes, says Williams, adding that seniors generally prefer to complete these enrollments over the phone.
Keep in mind that licensed insurance agents from PlanPrescriber or Extend Health may call you about their product offerings if you enter your personal information in their websites.
More from U.S. News
How to Be a Good Patient Wingman
12 Questions to Ask Before Discharge
Health Insurance: How to Get the Most for Your Dollar
How Medicare Beneficiaries Can Save Money on Prescription Drugs originally appeared on usnews.com
Update 03/29/18:
