Which statement about PDP costs is true?

Which statement about PDP costs is true?

• A. Premiums never change once set
• B. Drug costs are the same across all PDPs
• C. Premiums can vary by year
• D. Total cost may vary from plan to plan

Answer: (D)

PDP costs come from several parts and plans vary in each of them. The total amount you’d pay in a year isn’t just the monthly premium; it also includes any deductible and your out-of-pocket costs for drugs, which depend on the plan’s drug tiers, copays or coinsurance, and whether you reach the coverage gap or catastrophic coverage. Because plans choose different formularies (which drugs are covered) and price those drugs differently, the same medication can cost more in one PDP and less in another. Put together, these differences mean the total yearly cost can look quite different from plan to plan, even for someone with the same medication list. That’s why the statement about total cost varying across plans is true. It’s also worth noting that premiums can change year to year, and drug costs aren’t identical across PDPs, which reinforces why comparing plans is important.

PDP costs come from several parts and plans vary in each of them. The total amount you’d pay in a year isn’t just the monthly premium; it also includes any deductible and your out-of-pocket costs for drugs, which depend on the plan’s drug tiers, copays or coinsurance, and whether you reach the coverage gap or catastrophic coverage. Because plans choose different formularies (which drugs are covered) and price those drugs differently, the same medication can cost more in one PDP and less in another. Put together, these differences mean the total yearly cost can look quite different from plan to plan, even for someone with the same medication list. That’s why the statement about total cost varying across plans is true. It’s also worth noting that premiums can change year to year, and drug costs aren’t identical across PDPs, which reinforces why comparing plans is important.