Talking to a qualified Medicare insurance agent will help you choose the right plan.

You can take advantage of the correct Medicare Part D drug plan if you do your homework.

It is possible to save 60% or more with a Medicare drug plan, but that depends on how much you spend each year.

Find out more for Medicare Part D Plans in 2012.

Medicare Part D Options

Most basic plans are sufficient if your annual costs are close to $2,250.

Medicare Part D insurance premiums are reasonable with basic plans and range from a low of $12 or so, up to about $30 per month.

If your annual retail prescription drug expenses are beyond $2,250 then you need to consider a more expensive Medicare part D supplemental plan.

Consider This:

• Discuss your annual prescription costs with a pharmacist to find out what you would pay retail if you had "No Insurance". This is important because basic Medicare part d insurance is only good up to $2,250 for most medical insurance plans.
• Once you spend beyond $2,250 you are into the "Donut Hole" with most Medicare part d plans and it is at that point your coverage ends.
• You continue paying monthly premiums when in the "Donut Hole" with Medicare part d, but there is "No More Coverage" until you reach the catastrophic area which is pegged at $5,100.

A large number of seniors will not reach the catastrophic area in Medicare part d and will be stuck paying 100% when they go beyond $2,250 if you choose the wrong plan.

Medicare insurance policies should be chosen based on rates. Coverage on Medicare insurances are standardized, rates are varied. Medicare policies that you choose during the open enrollment period may be the most important decision you make for your retirement years.

Medicare Part D plans have been growing steadily more popular with seniors since their introduction in 2004. Part D plans provide assistance to those who are over 65 years of age and don’t have supplemental health insurance by providing coverage towards the cost of prescription drugs, or even by paying the whole fee.

The Benefits of Medicare Part D

If a prescription drug meets the criteria which class it as a generally prescribed medication, then Medicare Part D will cover you. All you need to do is pay a certain amount from your own pocket and your prescription medications will be covered in part or in their entirety for brand name or generic drugs.

How does it work? Medicare Part D beneficiaries are covered for a substantial 75% of their prescription fees, provided they are over the relatively low threshold of $250 per year, after first paying a $250 yearly deductible. Once the costs reach a threshold of $2250, beneficiaries have to cover all prescription drug costs themselves, but after $5100 all costs are covered by your Medicare Part D plan, ensuring expensive treatments for serious conditions are paid for.

Medicare Part D was introduced in order to provide compensation for out of pocket costs, alongside the other Medicare plans. Although regulated by the government, Medicare is not provided by them directly, it is offered by a number of independently run companies, so it is wise to investigate different Part D plans to ensure that your particular medication is covered before you buy.

Failing to choose the correct Medicare Part D plan could leave you facing a penalty for changing your policy later on. Do some research into what each provider offers and make sure you have a good knowledge of how Medicare works prior to purchasing your Part D plan. Ask yourself:

Medicare Part D offers policy holders several options to assist them in their regular prescription drug costs. Although several different privately run companies are involved in the scheme, they all adhere to the standards initiated by the US government, despite variations in their policies. Medicare Part D is entirely optional, as a supplemental offer on a beneficiary’s existing Medicare policy.

How did Humana become #1?

As Part D of Medicare was beginning, Humana's strategy was to use their Part D insurance coverage as a loss-leader. Humana has been America's leading Medicare Advantage insurance company since the early 1970s.

Humana's HMOs (Advantage plans) have had high market share in Texas and Florida since the Medicare HMO inception. Humana knows the value of getting "out of the box" early even if this means every additional Medicare Part D client causes a financial loss.

There are currently fifteen nationwide insurers offering Medicare Part D coverage and hundreds of regional actors in this nationwide drama as to who will actually stay in this industry. For the Part D insurer, the initial administrative and marketing expenses are staggering. As the insurer gets it foot in the door and survives the initial stage, the market becomes a printing press for profits.

Humana Part D insurance lost $187 for every member that signed up for their plan at Part D's inception on January, 2012. These losses were caused by Humana Part D having rates that were substantially lower than their competitors. This aggressive pricing caused Medicare Part D by Humana to capture 23.6% of the stand-alone nationwide market, as opposed to Medicare Part D market share of 11.5%.

As one would expect, Humana's Part D insurance coverage had record price increases for calendar year 2012. Humana's Part D mean premium rose from $21.75 to $38.65 for 2012. For calendar year 2012, their Medicare Part D is $41.56. While Part D Medicare coverage is now slightly less costly at an average rate of $38.78 per month. Humana's market share for the stand-alone Part D coverage have fallen to 18.5% while the Medicare Part D plans have risen to 12.8% market share.

13 Nationwide Insurers

 Here is the list (in order as of January 1, 2012):

   1.  Humana Insurance
   2.  United Insurance
   3.  Blue Cross/Unicare
   4.  Aetna Medicare
   5.  Coventry AdvantraRx
   6.  CIGNA Medicare Rx
   7.  SilverScript Insurance
   8.  WellCare Coverage
   9.  Sterling Life
   10. EnvisionRx Plus
   11. United American
   12. HealthSpring
   13. Health Net