Medicare Part D is a voluntary federal program that helps pay for the medical costs and prescription drugs for persons that are sixty-five years and older. This program uses the FPL, or the Federal Poverty Level , to determine the deductibles and how much they will cover. The FPL also depends on the number of persons in the household in comparison to the total household income.
Individuals who are eligible for the basic benefits associated with Medicare Part D deductibles have a 150% of Federal Poverty Level or higher. This basic benefit for Medicare Part D has a deductible of $250 and a co-pay after this deductible is met of 25% of the drug costs.
For individuals who are under the 100% Federal Poverty Level there is not a deductible. However, there is a co-pay of $1 for generic brands of popular medicines and $3 for the brand name drugs. If the individual is over the 100% Federal Poverty Level, there is still no deductible. However, there is a higher co-pay of $2 for generic brands of popular medicines and $5 for the brand name drugs.
If an individual is not eligible for Medicaid, Medicare Part D but is beneath the 150% Federal Poverty Level, they will qualify for low income subsidies. For an individual that is under the 135% FPL, they do not have a deductible and their co-pay is $2 for generic brands of popular medicines and $5 for the brand name drugs. If the individual is between 135% and 149% FPL they will have a co-pay of $50 and a 15% co-pay for their drug costs.
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