85% of Seniors are Overpaying for Prescriptions. Especially in These 5 States

Friday, September 28, 2018

There’s an important decision every senior must make when enrolling in Medicare. Yet most fail to do simple due diligence and wind up overpaying by tens of thousands of dollars.

First things first: If you think the cost of prescription drugs is included in Medicare, you’re unfortunately mistaken.

To avoid paying for costly drugs medications out-of-pocket, it’s highly recommended that seniors enroll in Medicare prescription drug coverage, often referred to as Part D. Part D plans are available through insurance companies as well as private organizations approved by Medicare.

Unfortunately, few seniors are aware that selecting the right Medicare Part D plan is one of the most important – and overlooked – choices you need to make at age 65.

Choose correctly and you get the coverage you need at the lowest possible rate.

Choose the wrong plan and you may end up overpaying by tens of thousands of dollars over the course of your retirement – money that should be going towards enjoying your retirement.

Yet most seniors have no idea which plan to choose, further complicated by the huge differences in premium costs from state to state.

Weiss Ratings, the nation’s leading agency for unbiased ratings of insurance companies, banks and stocks since 1971, analyzed over 23,000 private insurance companies offering Medicare Part D plans and found that a shocking 85% of Medicare Beneficiaries are overpaying for prescription drug coverage.

Weiss found the highest rates being charged in Texas, Colorado, Idaho, Georgia and Illinois.

In Texas we saw monthly rates as high as $197 and a low of $16, that’s a difference of $181 a month – over ten years you could save $21,720.

Colorado comes in a close second, with a high monthly rate of $191 and a low of $20. You save $2,052 a year and $20,520 over 10 years.

The chart below shows the Top 5 States with the highest Part D plan rates.

 

Before this year’s annual open enrollment period (October 15 through December 7), we urge all new and current Medicare beneficiaries to compare plans that fit your health needs.