$403.5

The above amount is typical of what most retirees pay monthly for Medicare+Medigap insurance+Part D prescription coverage.

If your retirement income is more than $88,000, you will pay more for Medicare Part D (and Part B too). However, income based premiums (IRMAA) end up affecting less than 5% of Medicare recipients.

Medicare prescription coverage under Part D is often given as a major source of out-of-pocket costs for retirees. The majority of retirees never reach the catastrophic level of spending.

Looking at the possible out of pocket costs is scary, but keep in mind OOP costs are not what the individual pays, OOP is a combination of the individuals coinsurance and what the plan pays and the manufacturers discount.

This is not to say if a person is taking a very expensive drug their 25% coinsurance cannot be a burden before the catastrophic level is reached. But it can be planned for. For those not yet retired, here is where a HSA or HRA can help when you retire.

Part D deductibles have a limit by law, many plans have a lower deductible and it may not apply to generic drugs.

Overall it’s not as bad as may be perceived.