cicerone imposter wrote:fishin, Actually, the breaking point of the drug benefit occurs at $7,500 - not $15,000, but that excludes the $420 premium cost to the beneficiary. The true number is probably closer to $10,000 if we add the cost of premium. This was reported in today's San Jose Mercury News.
Come on c.i.! You're grabbing at straws. How does $7,500 + $420 suddenly come up to $10,000?? Everywhere else in the world it would add up to $7,920. Not that it really matters. The $7,500 number is bogus too.
The big break point is EXACTLY $5,100. No more, no less.
http://i.cnn.net/cnn/interactive/allpolitics/0311/medicare.prescription/popup.medicare.gif
You pay your $32/month in premiums and the first $250 in perscription costs for the year. At that point Medicare pays 75% of the cost up to the $2,250 point. The range between $2,250 and $5,100 is entirely out of pocket. Once you hit the $5,100 point Medicare pays 95% of all remaining costs for the year. To get to your supposed "true number" of $10,000 the person would have to have total perscription costs of $124,700 in a single year.
If the individual's perscription costs for the year total the $2,250 marker they'd shell out $1,170. If they hit the $5,100 marker they shell out $4,020. If they managed to hit the $10,000 point they're out of pocket total is $4,265 and if they are one of the few that manages to hit the $20,000 marker they're out of pocket expenses would be $4,765. All of these numbers include the monthly premiums.
The real "break point" in all of this is the $810 marker. Any/everyone on this program that gets perscriptions in excess of the $810 point ends up paying less for the year under this plan than they would under the current Medicare program. If your drug costs are under $810/year then you lose money on it.