Compared to having no prescription drug coverage, most seniors will experience significant savings by participating in Part D.
If you are eligible for a low-income subsidy (Extra Help), it is likely you will experience substantial savings by enrolling in Part D. The Social Security Administration estimates that the Extra Help subsidy could be worth an average savings of $4,900 a year on prescription drugs. Savings are lower for beneficiaries who do not qualify for Extra Help, but on average, most seniors can expect their drug costs to drop by enrolling in the program. Out-of-pocket costs can be steep under Part D, and they increase annually at the rate of drug cost inflation. Over time, Medicare Part D out-of-pocket increases could outpace the Social Security Cost-of-Living Adjustment (COLA) which keeps pace with general inflation. It is important that more be done to control these costs for seniors, such as providing the Medicare program with the authority to negotiate lower prices from pharmaceutical manufacturers.