Here is a number David shared on Friday at Fiscal Fridays: $972,000.
That's what one client's drug costs looked like for next year, based on the prescription list she had typed in herself. David and Jason were preparing for her appointment the day before the show when it came up.
It wasn't real. Nothing was wrong with her plan. The list was wrong. The drugs she had typed in weren't quite the drugs she takes. One of the mix-ups was as small as a capsule versus a tablet.
It took the two of them about two hours to sort out which drugs she really takes and which doctors she really sees. Once they did, the number came back down to earth, and she was happy to keep her plan just as it was.
Most lists aren't that far off. But a small mistake on your drug list can make a good plan look terrible, or a bad plan look fine. With the Annual Enrollment Period open through December 7, this is the week to get the list right.
Why one small detail changes the price
Every drug plan has its own list of covered drugs, called a formulary. Most plans sort those drugs into tiers. A drug on a lower tier generally costs you less than one on a higher tier, and the same drug can sit on a different tier from one plan to the next.
The same medicine also comes in different versions. Different strengths. Tablet or capsule. Regular or extended release. A plan may treat those versions differently. So if your list says the wrong strength or the wrong form, a plan comparison is pricing a drug you don't take.
Where you fill matters too. Some plans have preferred pharmacies that charge less than other pharmacies in the same network, and mail order is sometimes cheaper. If the comparison uses a different pharmacy than you actually use, the numbers can be off.
The kitchen-table drug list
Here is the list we wish every client brought to their review. Grab your bottles, or ask your pharmacy for a printout of what you've filled this year, and write down:
- The exact name on the label. Brand or generic, spelled the way the bottle spells it.
- The strength. The number with "mg" or "mcg" after it.
- The form. Tablet, capsule, liquid, inhaler, cream, pen. Watch for letters like ER, XR, or XL after the name. They mean extended release, and they matter.
- How much and how often. One a day, two a day, once a week.
- Who prescribed it. Especially if more than one doctor writes your prescriptions.
- Where you fill it. Your local pharmacy, a chain, or mail order.
And don't forget the easy-to-forget ones. On the show, Jason mentioned a cream someone fills twice a year that lasts all year. It still belongs on the list.
If the number looks crazy, check the list first
If you run your drugs through a plan comparison and something looks wildly wrong, a drug not covered or a yearly cost with too many zeros, don't panic, and don't make a decision based on that number. Check the list first: the spelling, the strength, and the form.
That's exactly why our advisors prepare every appointment before you walk in. If you'd like a second set of eyes on your list, call us at (602) 281-3898 and bring the bottles. We'll do the sorting.
Disclaimer: This article is for educational purposes only. It is not sponsored, endorsed, or otherwise representative of Medicare or the federal Medicare program. American Retirement Advisors is not a government agency. For official Medicare information, visit medicare.gov or call 1-800-MEDICARE (1-800-633-4227).