The Sticker Shock of Medicare Part D – Why you should shop around

The enrollment season for Medicare prescription drug Part D and Medicare Advantage Part C runs from October 15th through December 7th. Reevaluating coverage annually can make the difference of hundreds of dollars in your pocketbook.

The suprise is that you may be facing double-digit premium increases if you stay with your current plan.

So start with your statement, review the annual notice of change that you should have received in September. This will explain any basic benefit changes for 2013.

Dig deeper, if you are currently taking any prescription drugs look for statements that the insurance company has the right to ask the ordering physician about cheaper alternatives, this could delay prescription drug fulfillment. Also pay attention to how much the plan charges for the drugs you need.

The doughnut hole is shrinking. Good news for those caught in the middle of spending $2,970 – $6,733. Enrollees will receive discounts on brand name drugs and a higher discount on generics.

Many plans are moving to a “preferred delivery network”. That means you must agree to receive your drugs through a specific retail or online pharmacy network. Make sure it works for you.

For those of you still working be aware of the high income surcharges on Medicare. This year the surcharges affect individuals with annual income starting at $85,000 (single filers) or $170,000 (joint filers), and move up from there. And there is a two year lag in income reporting so your 2012 surcharges are based on your 2010 tax returns.

The best online tool is the Medicare Plan Finder on the Medicare website. Fill in your medicare number and drugs you are using to find the right plan. Another site for one on one help is medicare counseling, a network of non-profit Medicare counseling services. And if you prefer to talk to someone on the pone there is the Medicare Rights Center offering free counseling by phone at 1-800-333-4114.