When comparing Part D plans there are a lot of things to consider.
You could focus on monthly premium, amount of the deductible, coinsurance and copayment amounts, whether or not there is extra gap coverage or a Plan’s Medicare Star rating.
But nothing is more important than the Part D formulary. The following video offers some sound advice on choosing a plan with the right formulary.
Why the formulary matters
A formulary is a list of all drugs covered by a particular plan. There is not a universal Part D formulary.
Formularies can ether be basic or enhanced. A basic formulary will include the most common drugs prescribed to people on Medicare.
An enhanced formulary will include all drugs on a basic formulary as well as some of the less common (more expensive) drugs. People with chronic health conditions are often served better by an enhanced formulary.
Not only will the formulary list all medications, they will also be categorized by tier. The higher the tier… the higher the copayment or coinsurance amount.
A drug will not necessarily be placed in the same tier by all Part D plans. This may have a big impact on your plan’s overall cost.
When comparing Part D plans, the most important thing to consider is the formulary. If you drugs are not covered you will not only have made a poor choice but you will spend more money paying out of pocket for those drugs.