Know Your Plan: Keeping Track
of Your Spending

You should always show your Medicare card at the pharmacy when you fill a prescription, even if you don't think the plan will pay anything. It is also important to keep track of your spending for covered drugs so you know when you are coming close to entering and exiting the coverage gap.

• Ask your pharmacist to tell you if your plan covers your medication when you fill the prescription. Make a note on the receipt to remind you what the pharmacist told you.
• Save all your receipts for prescription medicines.
• Read and keep all monthly statements from your plan.
• Keep an Expense Log like the one below to track your monthly costs.
• Call your plan if you have questions about your expenses.

Sample Expense Log

It's important to track your spending to see when you will enter and exit the coverage gap. The sample expense log below shows you how.

Mary has Medicare prescription drug coverage for the seven medicines she takes every month. Her plan has a $250 deductible at the beginning of the year and Mary pays a copay for each of her prescriptions. Your plan may be different than Mary's.

Download a printable PDF.

You can find out how much your plan paid by looking at your pharmacy receipt.

• The amount you paid plus the amount your plan paid is your total drug cost. Add your total drug costs each month too see how close you are to entering the coverage gap. Remember, in 2006 you enter the coverage gap when your total drug costs reach $2,250. In 2007, that amount increases to $2,400.
• Add the total amounts you paid each month to find out how close you are to exiting the coverage gap. In 2006, the out-of-pocket limit for most plans that have a coverage gap is $3,600. In 2007, the out-of-pocket limit increases to $3,850.