There is an excellent opportunity for seniors sharp enough to see it, and it is available to anyone willing to do a little math. The savings presented in Medicare part d are a little deceiving because at first glance it looks like 75%, when in fact that is only a portion of the overall savings in the formula. Here is a simple way to calculate how to take advantage of the new government medical insurance IF EXPENSES ARE OVER $2250 PER YEAR.
Four things need to be considered.
Start with annual prescription expenses. Figure out how much would be spent on prescriptions if there was no insurance at all. The full retail amount is important for this calculation.
Calculate which month of the year full retail costs reach the "Magic Mark" of $2250. This will expose when the medical insurance stops and full retail costs apply.
For plan costs, add up how much will be spent on the annual deductible and monthly premiums. (in the chosen medical insurance plan) Add $500 to this amount for the 25% not covered by Medicare part d.
Now add the full retail amount that will be spent for the remainder of the year to find the real expenses. Subtract savings ($1500) from expenses to calculate the real percentage of savings. Understand that 75% savings is impossible to reach.
Here's How To Maximize Savings if Prescription Expenses Are More Than $2250
The "Magic Mark" for maximum savings is $2250 in medicare part d. USE IT! Once prescription costs go beyond that magic mark, the percentage of savings sinks like a rock. To avoid that problem and to take advantage of every angle, use another discount source for prescriptions.
Canadian medications are typically 30% - 40% less expensive, and using a Canadian Pharmacy to balance expenses is like an additional medical insurance policy. The recommendation is to buy enough prescriptions from Canada every three months to target the "Magic Mark" of $2250 with the government medical insurance. By spending exactly $2250 per year (Retail) through medicare part d and buying the balance of medications from Canada, the savings will work out as follows.
Approximately 50% - 60% savings will be had through the government medical insurance plan, and about 30% - 40% savings on the portion purchased from Canada. If there are some medications that can be bought from Canada to help target the "Magic Mark" of $2250 then figure out which Canadian Prescriptions offer the greatest savings and buy those medications from Canada throughout the year. Keep in mind some medications will not be covered under Medicare part d and those ones would be ideal to get from Canada.
One More Consideration
If expenses are beyond $5100 there can still be a significant savings by using this method. It depends on how much would be spent at full retail in the year and how far expenses go into the catastrophic end. Use a Canadian Pharmacy to supplement the Government Medical Insurance and avoid the dreaded un-insured portion... the "Doughnut Hole"
