Economic solution for health insurance and health care crisis in American

The health care and health insurance dilemma in the United States penetrates and corrodes the very core of the quality of the American life. Our politicians and legislators are falling all over each other to produce both State and Federally mandated solutions for one of the most expensive problem facing our nation today. Documentaries such as "Sicko" with Michael Moore, and countless television stories and newspaper articles scream the need for change. As the never-ending inflation of medical services and prescription drugs rises, the bureaucracy of the insurance providers keeps pace by increasing premiums, and lowering quality of coverage for most Americans in their health plans. Drug companies are under constant scrutiny to offer more competitive pricing, but face little regulation compared to the foreign countries who have elected to impose cost controls endemic to their individual society's perceived needs.

So in the face of such a negative equation, how does a capital-driven society like the United States of America re-vamp its health care system, and still maintain the theology of "choice" and "capital market competition"? And how do we do it without killing more Americans?

To answer these questions it is necessary to take in to account what works and what doesn't in both American society and other societies where socialized medicine is the norm. The problem that Uncle Sam and many self-made American business folks have with socialized programs is the ability of such programs to denigrate a societies progress, and step away from our independent roots, both financially and health-wise. In order to continue to allow health insurance providers to shore up their billions of investment dollars ( a key pillar in our financial framework) and still take care of every American who is sick requires us to radically change the way the risk of such health problems is transferred, but to still collect regular premiums from taxpayers to fund the collective system. My proposed solution will be spelled out in this article in relatively simple terms forming a base architecture which will allow independent insurance providers to remain, independent hospitals and doctors to remain independent, and drug companies to remain competitively profitable while still insuring every American.

Proposal Architecture

I would propose a three-tiered system for Health Insurance, Prescription Drugs, and Medical Providers of all types:

I. Insurance Method

In order to keep insurance companies profitable and provide 100% base health coverage to all Americans at the same time, you need a combination of the net effect of socialized medicine and American free trade. A fund must be created by the federal government which closely mimics a Re-Insurance Company. Most insurance companies whether in the health field or commercial insurers have large re-insurance agreements and policies with major funds. A classic example is Berkshire Hathaway's "General RE" which underwrites some of the largest global policies in the world in their niche. For description purposes, the federal government needs to take the opposite approach of a non-profit, heavily taxed medicare and insurance system by creating the world's largest re-insurance vehicle. The re-insurance department is funded by A) a percentage of all health care premiums from all health insurance companies, and B) a 1.5% federal income tax increase across the board for all Americans. From this point forward, all health insurance providers are required to have a BASE INSURANCE LEVEL on all policies which will include a) full prescription coverage included, b) all doctor visits covered, and c) full major medical coverage with no deductible.

From an actuarial standpoint, what you are doing is not eliminating health insurance premiums for Americans. All working Americans who earn more than $16,000.00 per year must pay a scale-adjusted premium of the same category and type for the "base policy". The scale for premium is driven by total income per individual or household based on their current employment. However, you have just turned the entire insurance industry in to one big "group plan" where the risk is spread out over the entire country. Using the proportion of healthy Americans to those requiring services at any given point, this simplistic approach lowers the premium for the base policy to affordable levels for all wage earners, and gives the base policy for free to low income individuals and families. Those people who meet the low income standards get the same base insurance as everybody else, and are required to file with a private insurance company of their choice for insurance. The federal RE fund pays all insurers a minimum base amount equivalent to what they would get from a paying client. The "Federal RE" model receives 30 to 35% of the private insurance company's base premiums for all policies. The base premiums and the amount each individual must pay is determined by an actuarial committee of the new federal RE fund, but should be adjusted very rarely. Once the percentage is set, it becomes law, and the 1.5% tax increase across the board is primarily a cushion for the low income and poor.

Insurance companies then endeavor to differentiate themselves by adding features to the base policy for their clients for their marketing and packaging. They do NOT differentiate themselves by providing sub-standard insurance, as it is not optional. The base policy for all is a major medical insurance policy based on California Standards, and covers all co-pays and deductibles 100%. In order to make additional insured dollars, the health insurer must provide more elite services to guarantee a client who is willing to pay for additional features an even better position than the base position. This enables the following to occur in logical order:

* The federal government actually makes money on investing insurance premiums the way insurance companies do by their re-insurance department. Risk is spread out over each American that can afford to pay premiums. Premiums are minimal because of the inflated group size and reduced insurance company risk. The combination of a small federal tax increase to hedge dollar volume and beef up the account combines with receiving the RE premiums and investing them makes this federal program slightly profitable, and with the ability to adjust policy when needed.

* Insurance companies lower their risk, and are able to simplify and streamline their base coverage for major medical. Since all rules apply to all insurers (new or old) they can compete based on important but "ancillary" products to improve the insurance quality of those that can afford extra benefits. Major payouts will be largely reduced due to automatic RE participation on the policy's base components.

II. Prescription Drug Costs

By making Federal RE the "co-payer" in most medical transactions for both medicine and medical services, you have also created a need for a private-style approach to controlling the cost of drugs and other prescriptions. This is a sticky area, because development costs for drugs are hyped as being out of control if they cannot be later recouped with high prices.

Since the federal government in the form of Federal RE is now a payer/customer of the pharmaceutical companies, prices for medications must find a happy medium to allow for development and free trade, but with sane maximums for purchase. It is the job of the federal government to prevent monopolies. A monopoly is not defined as a single producer of a product (or drug) being the only source for a given product. A monopoly is defined as that single-source-producer charging an amount which hurts our society, and potentially prevents competition. (generic drugs) Standards must be developed for the maximum payment amount allowed for each category of medicine and medical supply. This will be an ever-changing exhaustive piece of work, done on a very ongoing basis by employees of Federal RE. The purpose is never to set prices, but to determine the maximum the fund will allow an insurance company or itself to collectively spend on a medication, taking into consideration all aspects of the newness of a product by using fluctuating actuarial and monetary scales. If a Pharmaceutical supplier will not meet these maximums, then unfortunately, the medicine will not be available until they are willing to bend. This is a flaw in the ointment than cannot be fixed any other way due to the way drugs are really developed in the United States. Americans who add to their "base policy' with supplemental insurance that covers expensive cutting-edge medicine could receive the medicine, but not the base-only policy holders. Drug companies will therefore be forced by demand to reduce their charges at least to the point of scale, in most normal scenarios. This portion of the plan cannot be altered to appease any particular party, because if you do the entire buying system falls apart. However, groups currently involved in assisting low-income victims could shift their focus to those precious few who are not able to get the most cutting edge product in time. The money simply cannot be covered by Federal RE. That does not mean another vehicle cannot be refocused, whether private or public, to assist in those few cases percentage-wise which require the latest cutting edge medications not charted as buy able.

III. Medical Treatment under Federal RE conditions

Medical treatment at this juncture is now available for all Americans, and in almost all cases their prescriptions are covered also. But now that we are prepared to fill up every clinic and major hospital with patients, how do we control the clinically insane costs of running that clinic or hospital? We can stave off socialized prescriptions via creating a powerful buyer in the market Through Federal RE, and having simple cost-overrun standards that are non-negotiable and consistent. But the clinics, hospitals, and emergency rooms didn't get any cheaper. Since all Americans (at a minimum) are covered by the best type of major medical insurance money could previously buy, the billing systems and related bureaucracies are naturally streamlined over time. But sadly, medical charges have very little to do with the actual cost of a procedure, and everything to do with what the various hospital and clinical administrations CAN charge in each situation. If we govern the pricing of each procedure too closely, then we are mimicking the socialized policies of countries who we do not wish to be.

I would argue that the same way maximums were set in item #B above, a geographically mapped system to avoid over-charges could be applied. What constitutes an overcharge is again decided by committee at Federal RE in much the same way that pharmaceuticals are banned when costs are unreasonable to both the insurers and the government. Because 100% of the American population is insured with Basic (unless they foolishly "opt out") the CUSTOMER is now the dual processors of Federal RE and the private insurance company involved in each case. If cost controls are unreasonable by today's standards to any given clinic, the quality of health care will suffer tremendously when the operating units do not get to charge whatever they want, or whatever they used to feel an insurer will pay. But when medical organizations get 100% continuity in payments through a single-payer style system with few errant delays in the simplified processing, they will actually make far more money than they do now in the world of constant claim disputes, and zero consistency. The monitoring committee, as with the prescription committees, are comprised of qualified professionals at Federal RE who understand the true economics of a hospital or clinic. Severe overcharges that are way beyond scale cannot and will not be honored. Plenty of money will still be spent for procedures (especially at the onset when the system is brand new) but the whole key to controlling price is actually not price controls as the system matures...but rather the lower cost of running a hospital and clinic when the payments are made for services with lightening speed. That's right..there is no reason to hold up funds under the new program once the services are provided. Medical billing will be a snap, and the incredible amounts of money spent on corrective systems can be lessened for each institution. Speed of payment to medical facilities is a major factor for overall success. So is having a fairly large and very intimate accounting system to track abuses. Frequent audits will replace much of the former aggravation of charging insurance companies, and will be a much more regular event at hospitals. A strong governmental role in auditing each facility regularly is actually a pillar of this plan, and will be gone in to more detail in later articles as to who and how this occurs, and how frequently.

The American dream is still a wonderful thing. We do not have to take away the profit motive from professionals who seek their fortune through honorable health industries, medical jobs, and insurance work. We simply need to define the rules of a new system that uses the age old insurance RULE OF LARGE NUMBERS to create a national group. The same talent required to be a preferred doctor, dentist, or insurance provider still exists in a more comprehensive form. State programs and the endless bureaucracy that encompasses them are eliminated and replaced by the new system. Welfare mothers and low-income households are fully sponsored for the coverage they really need, and the investments of Federal RE: over long period of time pay for most of the built-in deficiency. Hospitals, clinics, insurers, and drug companies all have to compete on the basis of quality and product provided instead of what HMO or PPO they belong to, or what "level of care" is minimally chosen. You will find that in practice it is an absolute fact that Federal RE will actually show a small profit when the smoke clears away, and medical care will improve through TRUE COMPETITION, not the bureaucratic version of it most of us suffer with today.

Harold B. Miller http://www.haroldmiller.besthealthagent.com/HomePage.aspx

Harold Miller provides exceptionally good planned design for Health Insurance Plans for self employed individuals and families. If you have any questions or comments about health insurance, please visit the web site provided for contact information.

Insurance-Don't Let healthcare Hijack retirement

It is one of the biggest financial challenges faced by today's pensioners, increasing costs of health care. Prescriptions, insurance premiums, the doctor's Office visits and hospital stays all grow faster than inflation. Whether you're in the golden years or rapidly approaching them, must be taken a serious look at costs as health will affect Your retirement nest egg.

Causes the increasing costs of health care are many. Today's population is living longer than ever. It is good, but it means that our system of care is extended to handle the increasing load. New medicines and other treatments are constantly coming on the market problems of health care in new ways. Preventive drugs are, it is recommended than ever before.

Some pensioners get blindsided by changes in the plan of the health of their company. Today, only 11% of companies offer health benefits to retirees and reduce this number. Many do not realize that these health benefits are not the responsibility of the company retiree, and may be amended at any time. To cut costs, many companies are reducing their benefits, loading more or completely eliminating the retiree health plans. For example, one of my clients for a large company and retirement due to his financial problems and increasing health care costs, its monthly contributions have increased from $ 40 per month to $ 220 in just 4 years.

So what is the person to do? You cannot escape the increasing costs of health care, but certainly you can plan for it. Pre-retirees need hard look at their savings plan, make sure that they are saving enough to cover these costs. Find financial Calculator on the Internet to determine how much to save.

If you're still years age and healthy, don't think you need to save less. As the age, the chances are health will decline, perhaps unexpectedly. So don't base your savings today health situation.

But saving enough is not always practical. Pre-retirees and pensioners alike must have a backup plan in place for their medical care or other expenses to take sudden unexpected. It may be necessary to adjust the investment strategy and method of investing. Be prepared to reduce other expenditure, possibly due to a reduction in Your style, or the sale of vacation home. You must be prepared to select your master, if necessary. Some seniors are reentering in the workplace, part time or full time to support these costs.

Another way to manage health care costs is slash the cost of prescriptions. Medicare recipients are entitled to Medicare approved prescription discount cards until the end of 2005. You can check out all the details http://www.aarp.orgin.

Find many that ordering drugs by mail offers them greater savings and convenience, especially in the case of ordering from Canadian pharmacies. In fact, several States, including Illinois, New Hampshire and Wisconsin have taken active steps to ensure that ordering drugs from Canada easier for their constituents. All told, 24 States have considered similar measures. With savings of around 60% in some cases, it is easy to see Why.

Sometimes ordering supplies 90-day has a lower cost, plus save 2 co-pays vs. 30 day supply. Some doctors will prescribe higher doses of drugs, assuming that the patient will cut the pill in half. This method of "double dose" should be used only under the supervision of Your physician, but also can reduce costs. Generics can save you a bundle.

Test plans for prescription, prices and ordering options you can take a wide freedom of time and may be a little confusing. But the savings really add up. The good news in all this is that today's seniors are living longer and better than ever. And this is due largely to the tremendous medical research. We may hate to pay more each year for our health, but this is a very care, which significantly increases our lives. With proper planning and operation of the savvy consumer, you can continue to afford, what is probably the greatest care in the world.

About the author

Nationally syndicated columnist for the financial and Voudrie Jeffrey Financial Planner Certified provides the services for the management of personal, in-depth money and advice to select private clients throughout the UNITED STATES. He LL answer to your question on the financial http://www.guardingyourwealth.com free in addition to their national syndicated columnist and certified financial planning practitioner, Mr. Voudrie provides services for the management of personal, private money to customers nationwide.

You have a financial question? Send me e-mail and I'll personally answer, free of charge. Www.guardingyourwealth.com go to and click on the "Ask Jeff".

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Why do I need Medicare supplemental insurance

According to Merriam-Webster something is supplementary is something what supplements, or "completes or makes and adding" to something that is missing. Medicare supplemental insurance deals with exactly that. This will end, lacking insurance offered by Medicare.

If you are turning 65 or if you have been disabled for 24 months (receiving disability benefits from social security), is likely to be eligible for Medicare (Government-run health insurance program for people with disabilities and the elderly). The Problem is, Medicare does not pay all the costs of health care. Here are some of the costs not covered by original Medicare (Medicare alone):

1. part A deductible

In the 2010 deductible for Medicare Part A (hospital in-patient insurance) is $ 1100. This deduction shall apply to any "benefit period", which is 60 days in length. Here's an example:

Martha had Medicare supplemental insurance and had to go to the hospital for four days, because it was having some chest pains and her Doctor wants to perform a procedure to remove some arterial blockage. Before any bills are paid, Martha had to pay $ 1,100 as a deduction.

61 days after Martha was any, was to return to the hospital for separate horses. Because of its 60-day period, the benefits have already expired, had to pay another deduction of $ 1100.

2. the Part B deductible

Deduction of part (b) shall apply to expenditure "out-patient services" (such as a visit with your doctor). This deduction is 155 $ per year. Since Martha Saw her Doctor before admitted to the hospital, a hospital, was also to pay the deductible, plus 20% of the fees for her doctor. Dr. Martha ordered some tests such as MRI and ECE. When he's like what he saw, he sent Her to see cardiologist. Also have to pay 20% of its fees.

3. Part B Coinsurance

Medicare is really the 80/20 plan. This means that Medicare pays 80% of patients and pay 20%. In this case, Martha had to pay 20% of medical bills (including specialists she saw) and 20% of the costs for many diagnostic tests such as MRI received before she was any.

In the case of Martha its total invoice for this incident over was $ 2400, because it does not have a complementary insurance. If Martha had Medicare supplemental insurance and Medicare Supplement Plan F, specifically, she would not have to pay for any of these costs. With the exception of the part b premium ($ 110.50 per month in 2010), and its contributions to Supplement Medicare (in the case of Martha, would be $ 154 per month), all deductibles and co-insurance Martha would have been paid by the insurance company.

What is exactly what additional insurance is Medicare, which pays for what is missing in original Medicare.

Get free quotes now Medicare supplemental insurance from one of the largest and trusted online brokerages, now go to the MedicareNational.com.: At MedicareNational.com our goal is to help you feel the savings for the plan, and is suitable for you. We Do Medicare ... Easy!

BUPA profits fall amid hard times in key markets

  Bupa said operations in the United Kingdom were unlikely to grow much until the company has begun recruiting still useful to private Bupa health group fell 72 percent to 118 million pounds in the year 2010 a year of cost cutting, writedowns and layoffs.

BUPA blamed the difficult economic conditions in key markets in the UK and USA, where reforms of unemployment and health care operations are affected.

Profits were affected after the company unveiled a ￡ 249. m write-down of the value of the property and acquisitions.

With this successful one-off stripped out underlying profits were up 9 percent to 465 million pounds.

Revenues in Europe and the U.S. Division rose 1 percent, as companies cut jobs and reduced health benefits for staff.

But better done by Bupa outside these regions, with a turnover of other international operations up to 20%.

Ray King, chief executive of Bupa, said he hoped that would stabilize the numbers of customers in the UK in 2011.

"Up to" corporates expand their payrolls once again, the opportunity for growth is a bit limited, he said.

In the United Kingdom, Bupa cut staff numbers by 15%-almost 500 people-resulting in a one-time restructuring charge of ￡ 6. 6 m.

However, with the constant growth in Asia Pacific and Latin America, we expect further strong impetus to our businesses in these markets, "Mr King said.

View the original article here

Health insurance-Florida health care and Education Reconciliation Act of 2010

Health care and Education Reconciliation Act of 2010 was signed by President Obama on March 30, 2010. The Act was adopted in the Senate 56-43. Was passed in the House in a vote of 220-207. The BILL was signed in the Northern Virginia Community College. The law was adopted after a few discussions around health care reform, which took some time for all to agree on a set of measures to reform health care. Health insurance Florida changes, like health insurance for all other countries.

Congressional Budget Office estimates that the net reduction in Federal deficits would be approximately 143 billion dollars during the years 2010-2019. This amount includes the reduction of 19 billion dollars from the provisions of the education and 124 billion dollars with the provisions of the income and health care. Some experts have questioned these amounts and that they are unrealistic. Experts feel that this BILL proposes to increase the deficit by as 562 billion USD. One thing is clear and is that health insurance Florida will be changed within the next few years, whether the deficit will be reduced or increased.

There are two different titles in the health care and Education Reconciliation Act; one addresses the reform of the health care and other student loan reform addresses. Health insurance in Florida to see these new items take place within the next few years, Some of the provisions are changes to the patient protection and affordable care Act, including increasing the tax credit for the purchase of insurance, provide more subsidies to lower incomerequires doctors be reimbursed at the full rate when treating Medicare patients, eliminating special offer giving senators, to increase the rate of payment for Medicaid doctors, primary care, reducing the penalty for not buying insurance, closing the Medicare Part D donut hole, 50% discount on brand-name drugs for Medicare patients and more.

Some provisions for students loan reform package include increasing the Pell Grant Scholarship Award, easier for parents to obtain Federal PLUS loans, increasing funding for community college, several billion will be used to Fund the poor and minority schools, the loans are managed directly by the Department of educationfrom 2014, new borrowers will be able to CAP the amount they spend on monthly repayment of a loan of up to 10% of their income for discretionary account, as well as after 2014, new borrowers will be closed after 20 years when all loan payments are up-to-date. If you need help finding specific coverages at a stipulated price, we can help Save 50% on health insurance.

Sean l. Johnson-journalist for the customer health insurance referral service, which refers to insurance carriers that can make their requirements and needs of consumers. Download the free offer of reduction on www.health-insurance-buyer.comtoday

Understanding Medigap insurance basics

Medigap insurance plan covers normal plans remain unattended by Medicare. Otherwise it is a health insurance plan that covers the gap replacement medicare care plans and always is a good idea to buy a Medigap insurance plan communicated in accordance with the existing plan for Medicare insurance.

The name of the Medicare Supplement insurance plans Plan explains how the objective of this policy. Medigap Insurance Plan activated with existing rights and the protection of the existing plan of an insurance policy.

Rules and regulation Medigap policy shall be governed by the State and federal laws, but these policies of the various insurance providers, which are called Medicare Supplement insurance companies.

Purchase Medigap insurance plan needs careful planning. The best time to purchase a Medigap policy to a period of Open enrollment, which lasts for a period of six months. Starts from the first day of the month in which the buyer intended

) gets 65 years of age or older
(b)) have already enrolled with Medicare plan B

After a long period of Open enrollment takes six started Medigap policies cannot be changed; There are, however, the special situation where it is possible to buy a Medigap insurance plan for a period of Open enrollment. In some U.S. States there is provision for the purchase of Medigap policies less than 65 years of age or older.

It is important to know the criteria for eligibility for Medicare Supplement plan purchases because the criteria for eligibility to purchase Medigap policies are completely different. Minimum criteria to be eligible

) The applicant must be a resident of the United States, where the Medigap policy plans are available
(b)) payable and existing enrollment Medicare parts a and b
(c)), the age is one of the major criteria for the purchase of Medigap plan; in most of the USA age eligibility of Medigap plan is 65 years old or below 65 years for physically challenged people and secondary stage failure patients.
(d)) the special medical history of a patient may download the qualifications for the adoption of the plan, Medicare Supplement insurance; However, the rules for registering due to medical history can differ from one country to another.

Medigap policyholders should get some positive guarantee against their Medigap policy; This ensures factors remain constant regardless of the health status of the policy-holders and an end to their health coverage.

In the following situations Medigap insurance health plans remain active.

) the policy holder may go beyond its network plan
(b)), the consumer decided to leave the plan, as it has failed to fulfil its contractual obligations.
(c)) and medicare cost plan medicare stopped contributing in Medicare plan or was stopped for a specific area
d) resulting from any reason a company Provider service has stopped the continuation of their Medigap policies
(e)) the policyholder leaves policy within one year of his term of Office of policy

People who qualify for the issue of guarantee generally get 63-day coverage time to apply or renew their Medigap insurance plan; During those 63 days of the society of insurance contract law is responsible to cover any pre-existing conditions, and the responsibility to issue a new policy on the basis of the products, rates and conditions of use, regardless of any type of adverse physical conditions of the policy holder. Always guarantee to be issuing applications submitted with notice of the application.

For Medicare supplementary insurance comparison for the best Medicare supplemental is better to compare Medigap contributions.

10 Things you should know about Medicare Part d

1. What is Medicare Part D?

Medicare Part D is optional, prescription drug coverage. It helps pay for out-patient prescribed medications. Part D is sold by private companies that are approved by Medicare.

2. Am I eligible for Part D Coverage?

If you have Medicare Part A and Medicare Part B, you are eligible to get prescription drug coverage through an individual policy or as part of a Medicare Advantage plan.

3. Do I need prescription drug coverage?

If you have original Medicare (Part A and Part B) or a Medicare Advantage plan that does not include drug coverage, you should get a Part D prescription drug coverage policy when you are first eligible - even if you don't take a lot of medications.

Unfortunately, our health is not guaranteed. As we age, it's likely that we will have an increased need for prescription medications. Prescriptions are very expensive - expensive enough that prescription drug coverage probably makes sense.

Again, don't wait. If you wait to get coverage, you will have to pay a penalty, which results in a permanent increase in your monthly premium.

4. How much will I pay?

The amount you will pay for your premiums and your medications will vary, oftentimes dramatically, from plan to plan. Here's a look at the typical expenses you will have:

Monthly Premium: Nationally, the average Part D premium is $31.92 per month, but varies from company to company and plan to plan. Part D prescription drug coverage is not standardized. There are plans that offer significantly more coverage with fewer out-of-pocket expenses, but these plans will have a higher premium. Others will offer less coverage for a lower premium. You choose which plan makes sense for you. Deductible: Some Part D plans have a yearly deductible, which is currently limited to $310. Copayments/Coinsurance: Most plans include some form of cost-sharing through copayments or coinsurance for each prescription you have filled. Typically, copayments are a flat rate and coinsurance is a percentage of the prescription's cost. You will most likely pay less for generic drugs and significantly more for brand-name and specialty medications.

5. What is the Donut Hole?

Most Part D plans have a coverage gap, which is referred to as the donut hole. After you've spent a certain amount ($2,830 in 2010), you must pay all of your own drug costs until you hit the catastrophic limit ($4,550 in 2010). Once you reach the catastrophic limit, most plans will cover the majority of the drug costs you incur within that calendar year. There are some plans that offer some sort of coverage in the donut hole. However, these plans are more expensive.

Your deductible, coinsurance and copayments count towards the $4,550 limit, but your monthly premiums do not. In 2010, if you have expenses in the donut hole, Medicare will send you a one-time tax-free $250 rebate if you're not already receiving Medicare Extra Help. In 2011, you will receive a 50 percent discount on brand name prescription drugs once you hit the donut hole (if you're not receiving Extra Help).

6. What pharmacies will I be able to use?

Typically, each prescription drug plan will have a network of pharmacies that you will be required to use. Making sure that you can use a pharmacy that is convenient for you is an important consideration when you're evaluating Medicare Part D plans.

7. Will my prescriptions be covered?

Each plan has its own formulary, which is a list of prescription drugs it covers. You can use the Formulary Finder to find plans that will match the medications you are currently taking.

Many plans will categorize drugs into tiers with a different price points. For example, generic drugs may be categorized as Tier 1, while non-preferred brand name drugs may be considered Tier 3. The tiers are not standardized, so a particular drug may be considered a Tier 2 drug on one plan and Tier 3 on another plan. If a plan you're considering uses a tier system, it's important that you know which tier your prescriptions are in so you can effectively evaluate your potential expenses.

Your plan could also include Step Therapy. If it does, you may initially be prescribed a similar, but cheaper medication. If that medication doesn't work effectively, you will be "stepped up" to the more expensive drug. There may also be quantity limits on how much medication you can receive at one time.

Some categories of drugs are excluded. These drugs include prescription taken to gain or lose weight, promote fertility, increase hair growth, or for cosmetic purposes. In-patient drugs, Barbiturates (sleeping pills), Benzodiazepines (central nervous system depressants), drugs for the symptomatic relief of cough and colds, prescription vitamins and drugs (except pre-natal vitamins and fluoride preparations) are also excluded.

8. What if I have coverage through an employer or union?

If you have coverage that is at least as good as or better than Medicare's standard prescription drug coverage, it may count as creditable prescription drug coverage. If it does, you should be able to enroll in Medicare Part D plan at a later date without incurring a penalty. Your best bet is to contact your benefit administrator before you make any changes to your coverage.

9. When should I join a Part D Plan?

Your seven-month Initial Enrollment Period is the best time to sign-up. If you don't join when you're first eligible, you can enroll in the Part D Open Enrollment Period, which is from November 15th to December 31st each year. Unless you have had other creditable prescription drug coverage, you may have to pay a late penalty if you fail to sign-up when you're first eligible. This penalty is typically a permanent increase in your premium.

10. Will I be able to switch plans?

You will be able to switch plans between November 15th and December 31st of each year. You do not have to notify your current drug plan that you are switching plans; your old coverage will end when your new coverage begins.

No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice unless specifically stated as such. All investments involve risk including possible loss of principal.

As the Founder and CEO of Snider Advisors, a boutique financial advisory firm, Kim Snider has helped thousands learn sound financial management practices. Snider Advisors was built on the belief that a good financial education is the best way to avoid being taken advantage of. That's why, unlike other financial advisors, we combine financial education and coaching with the products and services we offer. Along with financial education, Snider Advisors provides asset management, medicare supplement insurance, long-term care insurance, life insurance, disability insurance, retirement planning, and professional speakers.

Snider Advisors focuses on teaching others-and holding them accountable for-the skills needed to manage risk, accumulate savings, and achieve their goals with confidence. The primary, but not the only, tool we created to help our clients achieve peace of mind amidst economic doubt is the Snider Investment Method?. We've also designed a financial education curriculum called the KiM-B-A. With this, our mission is to explore, develop, and share sensible financial strategies with as many people as possible.

Visit Kim at https://www.kimsnider.com/KimSnider/Web/Home/Default.aspx?utm_source=ezine&utm_medium=article