2022 Medicare Drug Plan Prices Vary; Here's How Most Seniors Can Save

Millions of seniors have a once-a-year opportunity to reduce the cost of their Medicare prescription drug plan. The savings opportunity can be significant, amounting to hundreds of dollars yearly.

Some 48 million Americans covered by Medicare are enrolled in a prescription drug plan (PDP), often referred to as Medicare Part D. Nearly half are enrolled in a stand-alone PDP plan. The other 50% have drug coverage as part of their Medicare Advantage (MA) plan. A small percentage have coverage through an employer plan for active workers as well as TRICARE and the VA.

For the millions with a stand-alone Part D plan, Medicare Open Enrollment is the annual chance to make changes. Open Enrollment begins October 15 and concludes December 7 for coverage starting January 1, 2022. 

Obtaining better coverage and saving money are the two primary reasons all seniors with stand-alone Part D should compare coverage before open enrollment ends. A recent study reports that less than a third of eligible seniors do.

Drug plans have the right to change each year. Coverage for prescription medications you currently take may change for the coming year. Likewise, your doctor may have prescribed new medications during the past year that may cost you less with a different plan.

Nationally there are nearly 800 different stand-alone Part D plans. Regional in nature, the typical consumer has between 5 and 30 different plans available to choose from. Finding the best Medicare prescription drug plan today can take anywhere from 30 minutes to an hour experts report.

An analysis of 2022 Medicare drug plan costs reveals a significant spread between the lowest and highest priced Part D plan. According to the American Association for Medicare Supplement Insurance, a plan in San Francisco could cost as little as $7.50 or as much as $160.20 per-month. Some 20 plans are available for area residents to choose from.

Another reason to compare now is a significant benefit for Medicare beneficiaries with low incomes and modest assets. In 2022 these individuals will be eligible for assistance with Part D premiums. The Part D Low-Income Subsidy (LIS) program can benefit those with low incomes ($19,320 for individuals/$26,130 for married couples in 2021) and modest assets (less than $14,790 for individuals/$29,520 for couples in 2021).

Tips To Compare 2022 Medicare Part D Plan Pricing 

Comparing the different Medicare drug plan options does not have to be complex. There are a number of online systems that enable you to privately compare your current plan with other available options. Be prepared to enter information regarding the various prescription medications you take. Doing so will give you the most accurate results in terms of best available options.

Many local Medicare insurance agents will also perform a comparison. However, don't wait until the end of Open Enrollment as you may find their appointment times are fully booked,

The following are examples of lowest and highest prices for Part D plans reported by the American Association for Medicare Supplement Insurance.

For those with Medicare Advantage coverage, open enrollment is also the opportunity to review your plan. To find the best Medicare Advantage plans compare plans that provide prescription drug coverage and other benefits like dental and vision benefits.