Depending on how many prescription drugs a person takes, the financial benefit
Kathy, Bonnie and Joe are beneficiaries we are using for illustration. Their
stories are based on real people. For this example we used the standard plan
and the national average monthly premium of $31.17 for 2013. Remember, each
provider's plans may differ from the standard plan and may have different
monthly premiums, deductibles, copays and formularies.
Joe is 80 years old. He has several medical conditions, but has not had a major
illness this year. His drugs for high blood pressure and his glaucoma
medication are about $250 per month.
Joe's Annual Drug Costs $3000
Bonnie is 69 years old. She has chronic asthma and is taking an expensive new
drug to control her asthma. She spends $1,087 per month on this one drug alone.
Her average monthly spending on drugs is $1300.
Bonnie's Annual Drug Costs is $15,600
Kathy is 65 this year and fairly new to Medicare. She has no known health
conditions and does not take any prescription drugs. Kathy wants to buy the
Part D coverage because she doesn't want to pay higher monthly premiums if she
enrolls after her initial open enrollment ends.
Kathy's Annual Drug Cost $0
If Kathy were to wait say 5 years to enroll in Part D she would pay the
premium at that time plus a 1% per month penalty.