How Does it Work?
Jun 21, 2010 Carol Finch
Those that want to estimate if they may hit the Medicare Part D drug coverage gap may find it useful to use the AARP’s doughnut hole calculation tool. This can help an individual work out if they may fall into the gap and also gives useful advice on how to save money and stretch budgeting on prescription drugs. What can the AARP Medicare D doughnut hole calculator do and how does it work?
What Does the AARP Doughnut Hole Calculator do?
This tool allows an individual to find out the likelihood of falling into the Medicare Part D drug coverage gap (also often referred to as the doughnut hole). This gap represents a level of spending which, when reached, puts the responsibility for prescription drug payment on to the individual.
If the calculator shows that the individual may well hit the coverage gap, then they can also use the tool to explore other options. It can, for example, show a list of other drugs that may be cheaper than those prescribed. This could save money in a few ways. For example, it may help the individual to:
- Avoid falling into the coverage gap in the first place by reducing costs to avoid reaching the limit.
- Reduce time spent in the gap before reaching the other end (when Medicare will come into play again).
- Save money on self-funded prescription drugs in the doughnut hole by showing cheaper options.
It should be noted that the recommendations given by the calculator for alternative prescription drugs are based on products that may be generic substitutions or that are considered to be therapeutically similar. These should not necessarily be used as substitutes without consulting a doctor.
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