Time to Revisit Your Medicare Part D Prescription Drug Plan
Rising costs mean it's time to review your plan during open enrollment.
Some of the largest insurers have announced whopping price increases for their Medicare Part D prescription-drug plans. Take a long, hard look at your current coverage; you have from November 15 to December 31 to change plans for 2009, and it may pay for you to make a switch.
Average monthly premiums for Part D plans are rising by 12% -- from $25 to $28 -- in 2009. But average premiums for Humana's popular standard and enhanced plans are increasing by 60% or more. The average price for Humana's standard plan is now more than 329% higher than when it was first introduced in 2006, according to a study by health-consulting firm Avalere Health.
And don't look only at premiums when assessing your Part D choices. For example, fewer providers are offering coverage for the so-called doughnut hole -- the coverage gap that starts after your drug bills hit $2,700 and lasts until your out-of-pocket costs total $4,350Qand most now limit that coverage to generic drugs. So be sure to compare deductibles and co-payments.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The good news is that calculating your best option is easy using the Prescription Drug Plan Finder tool at Medicare.gov. Type in the drugs you take and the dosages, and you'll see how much you'll need to pay under the plans that are available in your area. Before selecting a plan, ask your doctor whether you're a candidate for switching to a generic medication; the coverage with the best deal in brand-name drugs may not be the best one for generics.
Or you could buy a Medicare Advantage plan and get coverage for all your prescription drugs as well as medical care from a private insurer. These plans tend to have lower premiums -- some as little as $0 per month in addition to your Medicare Part B premiumQbut may have larger out-of-pocket costs. The Medicare Options Compare tool at Medicare.gov shows which options are available in your area, plus average total costs based on your medical condition.
For personalized help picking either kind of plan, work with your local State Health Insurance Assistance Program. The Medicare Rights Center also has a lot of great resources.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2026SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, and up to $72,000 in 2026.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
SIMPLE IRA Contribution Limits for 2026simple IRA For 2026, the SIMPLE IRA contribution limit rises to $17,000, with a $4,000 catch-up for those 50 and over, totaling $21,000.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2026retirement plans The Roth 401(k) contribution limit for 2026 has increased, and workers who are 50 and older can save even more.
