Part D 2020 Changes – Part D prescription coverage is designed to help you pay for prescription medication. That cost can be a drain on some people who are prescribed expansive medication on a monthly bases. Part D 2020 changes address some of these issues.
Premiums have declined over the last 3 years by about 13.5%. In 2017, premiums were about 34.70 and in 2020 about $30. This saves beneficiaries approximately $1.9 billion in premium costs over time.
Since the premiums average is decreasing, the late enrollment penalties will decrease. This means beneficiaries that were without creditable prescriptions drug coverage for at least 63 days won’t have an increase in their penalty.
Part D Changes for 2020
CMS will require an Explanation of Benefits to be sent to beneficiaries monthly; this information would include drug price increases as well as lower-costing therapeutic alternative options.
The proposed coverage changes include a slight increase in the initial deductible for prescriptions. The 2019 amount of $415 will go up to $435, a jump of $20. The initial deductible goes towards your out of the pocket threshold.
The proposed changes to the initial coverage limit, or ICL, in 2020 is said to increase to $4,020, up from $3,820 in 2019. This is the point where you reach the so-called “Donut Hole” or coverage gap.
If you reach the Donut Hole or coverage gap period, the generic drug discount will increase from 63% in 2019 to 75% in 2020. Your costs for generic drugs while in the donut hole will be 25% of the retail price of the drugs. That is down from 37% in 2019.
Your 2020 Total Out-of-Pocket Cost (TrOOP) threshold will increase by $1,250 to $6,350 from the current 2019 TrOOP limit of $5,100. TrOOP is the dollar figure you must spend (or someone else spends on your behalf) to get out of the Donut Hole or Coverage Gap and into the Catastrophic Coverage phase of your Medicare Part D plan.