Question

Mr. Decaro has looked at Medicare prescription drug plans available in his area and noted a wide range in premiums. He thought that all the drug plans were required to offer the same standard benefits and would like you to explain why there is such a range in premiums. What should you tell him?

Answer 1

Some prescription drug plans may have higher

operating costs and/or may offer enhanced coverage in return for an additional

premium amount. He could look at plan designs to see if one of the enhanced plans would serve his needs better than a plan based on the standard design.

Part D enrollees have three options for paying their Part D premium.

(1) Automatic electronic monthly mechanism, such as withdrawal from their checking or savings bank account or automatic deduction from their credit or debit card;

(2) Direct monthly billing from the plan; or

(3) Automatic deduction from their monthly Social Security Administration (SSA) benefit check.

• Typically it takes 2-3 months for SSA withholding to begin or end.

• When withholding begins, it will be for the 2-3 months of premiums owed.

• If a beneficiary is considering this option, he/she should call the plan first.

Generally the beneficiary must stay with the premium payment option for the entire year.

Answer 2

Medicare premiums are made according to the income of the customer.

Step-by-step explanation:

A Medicare plan holder is bound to pay a certain amount of premium for their existing plan along with a monthly fee. A drug coverage plan includes monthly premium for the drug coverage. This premium differs according to the monthly income of the customer as mentioned in the IRS.

If the income of a plan holder is above a particular limit they will have to pay the amount adjusted monthly according to their income.