Medicare’s open enrollment period started on October 15 and runs through December 7 this year. That means you can now comparison-shop your Medicare coverage, which can include Part D prescription drug plans, Medicare Advantage Plans, or Medicare Supplement Plans.
For retirees participating in Medicare, it’s a good idea to revisit your Part D Prescription Drug Plan for these reasons:
- The Inflation Reduction Act imposed a $2,000 out-of-pocket limit that you’ll spend for prescription drugs during 2025.
- Medicare is now negotiating with drug providers to reduce the cost of prescription drugs.
- During 2024, you might have changed your pharmacy or the prescription drugs you take.
As a result, it’s possible that your current Prescription Drug Plan might not be the best plan for you in 2025 and beyond. To see for myself, I visited the Medicare website, which enables me to compare several plans, including the monthly premium costs, estimates of total annual out-of-pocket costs including premiums, and overall ratings of plan quality and performance.
Medicare’s website contained a list of the prescription drugs that I take and the pharmacies that I use, since I had previously entered this information into my online account. It gave me the chance to update the list of my prescription drugs, which was appropriate because I’d added a new prescription drug this year at the recommendation of my physician.
See How Much Money You Can Save By Shopping Medicare Part D Plans
Once I was finished updating my information, I clicked a button that triggered a comparison of 16 different plans that are available in my area. Here are the top five plans available for me that had the lowest total annual out-of-pocket costs (plan names kept confidential):
- Plan A: $268.80
- Plan B: $597.20
- Plan C: $631.57
- Plan D: $1,214.20
- Plan E: $1,441.76
As you can see, the annual cost for Plan A was $352 lower than Plan B, with far higher differences for the other three plans.
You’ll Also Want To Check Plan Quality Ratings
Plan A had a plan quality rating of 3-1/2 stars out of 5 (a bigger number means higher quality). The next three lowest-cost plans only had ratings of 2-1/2 stars. The most expensive plan of the group also had a rating of 3-1/2 stars, but that plan’s estimated annual out-of-pocket costs were more than $1,100 higher than Plan A. None of the 16 plans compared had quality ratings higher than 3-1/2 stars.
The whole process took about an hour, including enrolling in my new plan on the Medicare website. Considering the amount of money I’ll save, I felt like I was paying myself several hundred dollars per hour!
You can also use Medicare’s website to comparison-shop Medicare Advantage Plans and Medicare Supplement Plans. While I was on the website, I shopped our Medicare Supplement Plan and learned my current plan is still the best plan for me.
Shopping around for medical insurance plans is part of your retirement job. In the process, you might save lots of money and potentially improve your health with a high-quality plan. By spending a little bit of time, I feel more confident that I’m getting the best deal for my money.