Best Medicare Part D Drug Plan Options for Seniors Taking the Top 10 Most Common Medications

Nearly 90% of U.S. adults 65 and older currently take at least one prescription medication. More than half (54%) of American seniors take four or more. For the millions with a Medicare drug plan, Open Enrollment may be the one chance to review and find the best coverage for the coming year.

Some 24 million Americans have a stand-alone Medicare prescription drug (Part D) plan.  Depending on where you live there can be between 10 and 30 different plans available. Comparing your 2022 plan options now can result in some shocking levels of savings.

Regrettably, the vast majority of seniors with Part D plan coverage fail to compare their coverage on an annual basis. Because monthly premiums can be low, from under $10 to $60 for some plans, many overlook the real financial risk. Picking the wrong plan can expose you to as much as $10,012, the 2022 out-of-pocket expense threshold.

Why One Senior's Cost is $4,227 And Another's Is $153,000

Monthly Part D premiums and deductibles are only part of what seniors should compare. A just-completed analysis conducted by the American Association for Medicare Supplement looked at 2022 options for a Broward County Florida senior.  The analysis included some of the 10 most commonly taken medications and several of the 10 most costly drugs prescribed.

The analysis found the following: for Miami-area seniors, 28 different plans are available with some insurers offering multiple options.  The comparison looked at different scenarios focused on three of the most commonly prescribed medications including Omeprazole (used to treat stomach acid), Levothyroxine (thyroid) and Atorvastatin (cholesterol treatment).

Comparing Plans

Comparing the various plans yielded the potential for some nominal savings. Monthly premiums for coverage ranged from a low of $7.30 to around $60. The typical plan deductible was $445 for the year; though lower amounts including $0 deductible plans are to be found. Overall, plans were generally equal in terms of an individual's maximum cost exposure assuming they used in-network providers or the plan's preferred mail order services.

According to the Association's analysis, adding just one new medication can have a dramatic effect on prescription expenses.   The prevalence of gallstones increases with age: 15% of men and 24% of women will have gallstones by age 70. In a listing of drugs prescribed in the U.S., Chenodahl (used to treat gallstones) ranked as the 10th most expensive.  

A participant choosing coverage from the Medicare Part D company offering one of the least costly options for 3 common medications would face a potential total cost of $153,000 including their Chenodahl prescription. And, that was using a mail order provider. Using a designated retail pharmacy did reduce the maximum cost to about $51,000 a year. Both circumstances would meet the out-of-pocket expense threshold; but still require quite a hefty payment.

Save Money with the Right Part D Plan

Determining the best Medicare Part D plan available for their unique situation, seniors can save on both their monthly premium cost as well as their maximum exposure to $4,227 for the year, well below the maximum threshold.

Who Should Compare Drug Plans During Open Enrollment

 The short answer is everybody with Medicare stand-alone drug plan coverage.  Medicare Open Enrollment is your chance to compare plans and lock in coverage for the coming year.

With each new year, Part D plans can change their “formulary” and “tiers” for covered drugs you currently take.   Typically drugs are designated by the plan and assigned 1 of 3 tiers with some being classified as specialty drugs.

If your doctor changed medications during 2021, or if a new medication was prescribed, it can be vitally important to compare during Open Enrollment.

Finally, no one can predict your future health needs. However, as we age, our needs tend to increase. Those changes typically come with new prescriptions. As a result, looking at plans that offer better coverage options for an unforeseen need can be a valuable use of time.

Comparing drug plans can be accomplished with relative ease.  Several organizations provide instant online 2022 Medicare drug plan comparison tools.  Simply enter a listing of your prescription medications to see plan options, costs and limits for your area.

  Another option is working with a local independent Medicare insurance agent.  Many will offer complimentary help with the hope of securing your future Medicare insurance business.  Agents can be found using the online directory hosted by the American Association for Medicare Supplement Insurance, a national organization.

Medicare's Open Enrollment ends December 7th. Doing a quick Part D plan check-up could be just what your financial doctor ordered.