Ask Terry Questions Signing up for Medicare Part D

Signing up for Medicare Part D

By Terry Savage on November 29, 2023 | Insurance & Annuities

Please discuss signing up for Part D – drugs option on Medicare. I didn’t sign up for it 10 yrs ago since I was taking No medications and figured I’d be saving that much each month by not signing up for it. I heard there was a 1% penalty but didn’t ask details. 1% of what ??? Turns out that now when I’m being realistic about the future at 76 yet only taking a small statin medication. In talking to my insurance rep, he says it is 1% of what I didn’t pay in the last 10 yrs and that amount is EVERY month from now on. That’s a ridiculous amount to pay forever. I think this is something to discuss on your WGN radio events. What do you think and recommend regarding signing up
for Part D. I heard you yesterday on Wendy’s show and often catch you over lunch. But have never heard Part D commentaries.
Aetna Insurance agent did find the best plan for me (Eagle) where any drugs cost would be part of my total yearly expense if I did have a major year of expenses. Thanks – Meanwhile I tell anyone I can – to sign up for Part D.

Terry Says

I have ALWAYS told people they must sign up — even if they only take Tylenol! Sorry you didn’t get the message. That penalty is costly.
They did that to create a bigger pool of money to provide lower prices to those who do take drugs. If everyone signed up only when first prescribed, it wouldn’t make sense. The whole idea of insurance is to purchase IN ADVANCE OF NEED!

So lets say you would have paid roughly $150 to $175 for Part D for those 10 years. You saved that $1500 or so in premiums. Now you will pay it back in excess premiums!



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