The ABCs of Medicare: Prescription Drug Plans

I searched the database myself for plans that had no deductible and covered all generics in the gap. The two lowest-cost plans, in nearly all the states, were offered by SilverScript Insurance Company, a CVS-Caremark(CVS Quote) company, and MemberHealth, a prescription benefit management company.

The monthly premiums on Silverscript Plus and Complete plans range from $28 to $56, depending on the state you live in. Community CCRx Gold by MemberHealth premiums ranges from $20 to $85. By way of example, in New York, the Plus plan is offered at $34.10 and Community CCRX is $46.50, while a person in Florida would be paying $37.50 or $41.90, respectively, for these plans.

If you live in Colorado or Hawaii, check out Pennsylvania Life Insurance Company's plan, Prescription Pathway Platinum, for competitive premium rates. UPMC Health Plan in Pennsylvania and West Virginia, Amerihealth in New Jersey and Paramount Prescription Drug Plan in Ohio also offer a low-cost plan with no deductible and generic coverage in the gap.

These plans all charge a competitive rate for a no-deductible plan with gap coverage, but that doesn't mean you want to eliminate the other choices right off the bat. Use the Medicare tool to further investigate the details such as what the co-pay and coinsurance amounts are and the estimated total monthly/annual cost to you.

You can find even cheaper plans if the prescriptions you use are considered "preferred," since some insurers offer "preferred" generics coverage in the gap.

On the other hand, if you use brand-name drugs, then paying a higher premium for a plan that does not cover such prescriptions during the gap won't be worthwhile.

If you are lucky enough to use little or no prescription drugs than you will want to stay away from the higher-cost plans. The Centers for Medicare and Medicaid Services estimates that the average premium paid for Part D coverage will be roughly $25 in 2008. But you can find many providers, including some of the largest insurers in the nation, selling below that amount if you don't expect to need coverage in the gap.

In Florida, Health Net's (HNT Quote) plan cost $12.10 per month, United Healthcare (UNH Quote) offers one in Maine for $16.30, in Georgia you can purchase a plan for $18.40 from Aetna (AET Quote), and Humana (HUM Quote) even offers a plan in Wisconsin for $14.40 that includes no deductible.

For more information, check out TheStreet.com Ratings' Consumer Guide to Prescription Drug Plans.

Prescription Plan Benefits Consumers will shoulder a greater burden this year.
	2007	2008
Deductible	$265	$275
Initial Coverage Limit	$2,400	$2,510
Out-of-Pocket Threshold	$3,850	$4,050
Source: Centers for Medicare & Medicaid Services