Confused about the new Medicare changes? It's all clearly explained in this Washington Post article:

In this example, the out-of-pocket cost for drugs would total $750. That cost results from the plan's $250 annual deductible and 25 percent in co-payments, or $500, for the next $2,000 in drugs, until the total cost reaches $2,250. To qualify for the drug benefit, participants must also pay an average premium of $35 a month, adding another $420 to the annual cost. That would bring the patient's total cost to $1,170.

The plan would reimburse 75 percent of the drug costs (after the $250 deductible is paid) up to $2,250 a year, for a $1,500 annual benefit. If a person's drug costs exceed $2,250 a year, there is no additional benefit until out-of-pocket expenses reach $3,600 a year. That would amount to a $2,850 gap that the patient must pay.

I'm sure everyone's parents and grandparents will have no trouble figuring this out...
posted by Bruce Wright at 2:38 PM #