Medicare $2,000 Drug Cap
Good morning,
Thank you for your most recent article on the new Medicare rules.
My question is on the new $2,000 cap on drugs that an individual will pay annually.
For example, I annually pay around $3,000 for my eight diabetes and blood pressure meds. So I thought is there really any worry on which drug plan to pick since I will never pay more than $2,000? Somehow I could not believe it was going to work that way. I looked wide and far to find the answer and the one caveat I came up with is the $2,000 cap would be in effect as long as your insurer covers your drugs. Sure enough only 6 companies covered 8 of my 8 drugs.
So did I get it right?
A bonus question please. I am mindful of the Medicare high income surcharge, also known as the Income Related Monthly Adjustment Amount (IRMAA) to Medicare Part B and Part D as I am sometimes close to this threshold. My questions are does the Part D premium or the drug $2,000 cap reflect in any way on the IRMAA?
Thanks again for helping all of us navigate this sometimes tricky business.
Terry Says
I just posted a more complete explanation of the Part D search process. I think this will answer your questions: https://www.terrysavage.com/part-d-how-to-choose/
And your IRMAA adjustment is based on your Adjusted gross income (AGI) from your tax filings two years prior to your enrollment date. It has nothing to do with your Medicare drug program choice.
