How to Select Prescription Drug Insurance Coverage

Prescription drug insurance, or a prescription drug plan, is a policy that specifically covers part or all of the cost of prescriptions. Some group plans offer prescription drug insurance. However, individuals can also buy their own coverage. Read on to learn how to select prescription drug insurance coverage.

Difficulty: Moderately Easy

Instructions

1. Decide on what you need your prescription drug insurance to provide. If you have some form of health insurance already, you may only need a supplement to your current coverage.

2. Contact your current insurance provider. Some companies will provide you with prescription drug insurance, at a minimal rate, if you already patronize their institutions for health insurance.

3. Ask whether your employer offers an insurance plan that covers prescription medications. While this plan may not be the most ideal, it may be more cost-effective than those designed to cover individuals.

4. Check the National Association of Health Underwriters' (NAHU) Health Care Coverage Options Database to see the options available for your selection within your state. See the Resources section below for a link. Checking with NAHU is also a way to protect yourself against scams and disreputable businesses.

5. Determine which plan best suits your needs by checking details like cost, coverage and the pharmacies that are available to users. Some are simply discount programs, in which you will still pay for your medications, but at a reduced rate. Others are true insurance policies requiring you to pay a deductible and sometimes a co-payment for your prescriptions.

6. Consider your eligibility for Medicare coverage. If you are retired and eligible for Medicare, the Medicare website offers several options. See the Resources section below for a link.

7. Watch your budget when purchasing insurance. Prescription drug insurance, purchased on an individual basis, is typically more expensive than group or company plans.

Tips & Warnings

• Some insurance companies include medications in major medical insurance, but many do not. If your insurance is limited to major medical insurance, you may need to select separate prescription drug insurance.
• If you qualify for Medicare, there is a prescription drug plan available to add on to your other coverage.
• Never allow yourself to be rushed into a decision. Prescription insurance scams rely on rushing a buyer into a decision and require money up front. Select a plan only after reading all the small print.

Resources

• Health Care Plans on the Medicare Website
• Insurance Options on the NAHU Site

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