As more Americans continue to work past what was once considered retirement age, questions about Medicare coverage are becoming more common. If you’re over the age of 65, Medicare coverage works in concert with your current employer insurance to cover your healthcare expenses.
At One Tech Engineering, our engineering recruiters offer a complete benefits package for engineering and technical professionals. In this post, we’ll talk about one of the most overlooked Medicare issues our employees encounter: the Medicare gap. Give us a call to learn more about benefits packages and job placement today.
What is Medicare Open Enrollment?
The Medicare Open Enrollment period begins on October 15th each year and runs through December 17th. For anyone with a Pard D drug plan or Medicare Advantage, it’s important to review your coverage for the coming year during this period.
Around the first week of October, you may receive a notice of changes in your plan. Don’t overlook this important documentation. Instead, take time out to carefully review those changes and make sure you understand how they will affect your healthcare.
If you’re not satisfied with your coverage, you’ll need to look at other plans and enroll during this period. Failure to take action will leave you stuck with the coverage you have in the coming year.
The Medicare Coverage Gap
The Medicare coverage gap refers to a period in the Medicare Part D drug coverage where beneficiaries pay out of pocket. This gap affects millions of beneficiaries each year. If you take expensive medications, the coverage gap can hit you hard. During the coverage gap, beneficiaries are responsible for all of their medication costs. Thanks to changes in coverage, this gap has narrowed somewhat in 2020.
Here’s how the payment stages will play out in 2021:
● The deductible has increased by $10 from $435 to $445.
● Plans typically designate copays which vary by medication.
● Once plans reach $4130, the gap kicks in.
● This amount increased by $110 from last year.
● During the gap period, all prescription medications will be discounted by 25%.
● Once out-of-pocket costs hit $6550, up $200 from 2020, beneficiaries pay $3.70 or 5% on generic medications depending on which is greater. For name-brand medications, this amount increases to $9.20.
● There is no maximum amount during this final period of coverage.
Learn About Benefits with our Engineering Recruiters
Although the coverage gap is mostly closed, it can still cost you. If you use Medicare and take several high-cost medications, your medication expenses can increase dramatically during this period.
You’ve worked hard your whole life, and you still have plenty to offer as an engineering professional. That’s why you deserve a benefits package that helps cover your medication costs so you can keep doing what you best.
At One Tech engineering, we help with the coverage gap by offering a complete benefits package for both contract and contract-to-direct employees. To find out more about our benefits packages, connect with our engineering recruiters at 952.884.9199 or contact us online.