Here are some facts that may help answer the concerns and make the issue a little clearer.
The Government is enforcing Medicare Part D. Proof of this is evident if considering the penalties individuals will incur by not joining Medicare Part D by May15th. The accumulative 1% penalty (per month) can become expensive over time and looks counter productive. It seems more likely the Government agenda is geared towards herding the public into a central plan and closing the doors for international prescription imports.
Medicare Part D is great if individual retail expenses are exactly $2250 each year. The further away annual costs are from that perfect amount, the less effective the plan is.
Medicare Part D is deceptive because it is presented as a 75% savings when in reality the savings are at best 60% when the perfect amount of $2250 is spent.
Medications that are not insured obviously reduce the savings. If you spend exactly $2250 retail on insured medications then your savings will be significant, probably between 50% and 60%. So who will hit that perfect amount?
Here are some scenarios to consider: (Based on $250 deductible and monthly premiums of $35)
* Spend $1200 on insured medications - Savings will be about 16%
* Spend $3000 on insured medications - Savings will be about 36%
* Spend $4000 on insured medications - Savings will be about 27%
The Perfect Situation:
* Spend $2250 on insured medications - Savings will be 52%
Anyone who is spending more than $2250 on prescriptions each year will be unhappy paying full retail after spending beyond the $2250 mark, and possibly angry when they realize the monthly premiums are still due.
Spokesman for Professional Services Canada Darwin Corby, has this advice:
"Sit down and calculate all your prescription expenses at full retail by phoning a local Pharmacy. Get familiar with your Medicare Part D costs. Add the $250 deductible and monthly premiums together with the %25 not covered in the first $2250. Then add the full retail you will be paying in the doughnut hole on top of your costs. (The doughnut hole is the gap between $2250 and $5100)
Subtract the deductible, monthly premiums, doughnut hole expenses and 25% from the savings to find your approximate savings for the year. You also need to understand that reaching the ideal savings is highly unlikely."
A simple webpage chart is provided to help understand Medicare Part D on this page
http://www.medicareaide.com/supplement.html
Recommendations:
Use a Canadian Prescription service to help avoid the Doughnut hole if expenses are high. Join a low cost Medicare Part D plan to avoid the penalties if expenses are low. Enquire about Canadian prescription prices to maximize savings.
