Calculations of Medicare Part D

In the previous session, you have learned the benefits of Medicare Part D plans. One of its benefits is that you can have a long-term savings as you will be provided with a plan that allows you to opt or add products that you need. Money is a significant factor to consider when you are going to purchase something most especially in healthcare needs. Most products available in drugstores are becoming more expensive as time passes by that is why it is empirical to know how to budget and save your money.  You may be wondering how calculations goes like that proves it is much more affordable to enroll in the plan than just buying healthcare products in different online drugstores? Also,in the previous session, you have learned about the Medicare Part D plan in instances that the person will not enter the donut hole. In this part we will discuss about the calculations to better understand the program. In addition, you will also know how to calculate and allocate money for certain medical expenses.

For example, David is going to spend $4,200 on drugs in the year 2021

  • He is going to pay $310 as initial deductible
  • He will be paying 25% of the total cost $2520 which is the cost after the deduction of the initial payment from $2830. Thus, the out of the pocket cost for David before actually reaching the Donut Hole is $632.50 which is the 25% of the amount including the deductible of the initial payment of $310
  • In this case, it will make David reach the coverage gap and will make him responsible of paying the 100% of the rest of the amount of $1370 which is the cost after subtracting $2830 from $4200.

Therefore, the total amount that David should be paying after taking the plan is $310+$632.50+$1370=$3372.50 that is excluding the low monthly premium amount. This will be lesser than the amount that you could pay if ever you did not choose to enroll in the program or if you decide not to choose the plan.

For you to be more enlightened, enrolling in the program will not only impact your finances and budget but you will also indulge in the feeling of being secured and not having worries as you already have everything you need included in the Medicare Plan D.

Based on the given calculations, you can really see that it is really beneficial to avail the plan. The expenses are lesser and therefore you can have long-term savings compared to when you buy self-care products and health-care products to separate stores. In addition to that, it will be much more of a hassle to you. This makes Medical Part D plan an advantage to those people in a budget. After all, it is still you who knows what you need and what is need to fulfill that need. Just be wise in choosing and making decisions so you will avoid getting regrets and problems along the way.

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