Medicare Advantage Prescription Drug (MA-PD) Plans

The Medicare prescription drug plan program, also referred to as Medicare Part D, became effective January 1, 2006. Most Medicare Advantage plans available in Wisconsin include prescription drug plan coverage and are referred to as Medicare Advantage prescription drug (MA-PD) plans. MA-PD plans are subject to the same requirements as stand-alone prescription drug plans (PDPs).

Cost of Medicare Advantage Prescription Drug (MA-PD) Plan Coverage

In most circumstances, you will pay a premium for the prescription drug coverage under a Medicare Advantage plan. In addition to monthly premiums, you will pay an annual deductible which is $275 in 2008, plus copayments for each of your prescription drugs. You will pay 100% of the cost of covered drugs between $2,510 and $5,726.25 in 2008, called a coverage gap. The amount of your monthly out-of-pocket expenses will depend on how many prescriptions you need. After you have spent $4,050 in out-of-pocket costs in 2008, you will have to pay only 5% of the cost of covered prescriptions for the rest of the year. (Centers for Medicare and Medicaid Services)