Medicare Part D Deadline Today
February 15, 2017
Today, 15 May, is the last day people can sign up to Medicare Part D, Medicare's Prescription Program, if they don't want to incur penalties for enrolling late.
The Medicare Prescription Program is aimed at helping America's elderly and disabled get cheaper prescription drugs. The sign up period was from Januray 1 - May 15. Since the birth of Part D of the Medicare Modernization Act, 2003, it has been surrounded by controversy - from both the left and right.
Some have called it a breakthrough for American health care, while others say it is a gravy train for the insurance and pharmaceutical industries. Many have said signing up is so complicated that a large number of seniors will not meet today's deadline. However, recent surveys have placed satisfaction levels at 65% (Washington Post/ABC News poll), while another survey found that 80% of people said signing up was not complicated (Kaiser Family Foundation Poll).
Even though sign up started slowly, there are indications there has been a surge over the last couple of weeks. Last week some Democrats said the Bush Administration's numbers are wrong because several people have been counted twice. There have been complaints that America's most needy have been left behind (Medicare Rights Center).
The Bush Administration believes 90% of those eligible will have signed up by today's deadline. It also claims the average beneficiary will save $1,100 on prescription payments this year. Critics estimate that 10 million eligible people will not have signed up.
If you are single and earn $15,000 per year or less, or a couple that earn $20,000 per year or less, you will not incur a penalty for late sign up. The Bush Administration says half of the people who do not meet the deadline will be in these two groups.
If you earn more than the two groups above, and you sign up late, you will have to pay a penalty of 1% for each month you are late. For example, if you sign up next November your premiums will cost 7% more.
The average beneficiary who enrolled before the deadline pays $25 per month, amounts vary according to which plan you signed up for.
What does the plan cover?
The beneficiary pays the first $250 of his/her prescription costs. The program pays 75% from $250 to 2,250. Then the beneficiary pays all costs from $2250 to $5,100. The program pays for 95% of the costs over $5,100. There is a 'doughnut hole' - a point at which you are paying a high percentage of the drugs' costs. If your costs are $5,099 you will be paying a much higher percentage of costs than someone whose costs reached $2249. If your costs are $5,099 you will be paying a much higher percentage of costs than someone whose costs reached $9,000.