Are you overpaying on your Medicare Part D plan?

Each year, from Oct. 15 to Dec. 7, the 64 million Americans enrolled in Medicare can change their Part D Drug plans, as well as their Medicare Advantage plans without penalty. While this can save them hundreds or even thousands of dollars, only 10 to 15 percent choose to do so.

Why don't people take advantage of this potential savings? It's daunting and often people don't make a change until there 's suddenly a dramatic increase in costs.

SHIIP, an independent program funded by federal agencies, is not affiliated with the insurance industry. Its counselors provide free, unbiased and factual health insurance to North Carolina residents.

Van Braxton, N.C. SHIIP director, stated, "Last year, SHIIP counseled more than 105,000 NC Medicare beneficiaries and helped them save $44.3 million dollars. SHIIP also served almost 21,000 Medicare beneficiaries with disabilities, and more than 29,000 with incomes below 150 percent of the poverty level."

Recently, a client I met with who I'll call Alice, told me that her drug costs for five prescriptions had skyrocketed over the past year by more than $300 per month. She said she had stopped taking everything.

The interesting thing is that the costs for medications can fall all over the map and vary dramatically between drug plans. While a senior might assume that they can simply not afford their drugs, that might not be the case if they look to other plans.

Each year, insurance companies revise formularies, deductibles, copays and premiums. While a drug might be covered by a plan one year, it might not the following year. Likewise, an individual's medication list might also change drastically. Some particularly expensive drugs are not covered at all.

In the case of Alice, a polite but flustered 73-year-old grandmother who had worked many years, we did find a plan for a considerably lower annual cost. Her out-of-pocket cost for the premium, deductible and drugs would be around $2,200 annually; whereas on the older plan, she would pay almost $4,800.

Unfortunately, the $2,200, after she paid for her Part B and Supplement plan, was still beyond her reach. We are in the process of trying to get her Extra Help, which is a federal subsidy that helps people on limited income pay for Part D. If Alice is approved for that, her application is then automatically sent to North Carolina, where she will be assessed for help with Part B costs.

Only around one in 10 Medicare recipients bother to assess whether they should change plans each year. While not all of those who do compare plans find such a significant cost savings, but according to U.S. News and World Reports, there is an average overspending for those who do not switch of $373 per year.

Once everything is entered, the site generates a list of plans, ordered by cost. You can choose which plans to compare side-to-side. If you are satisfied that you have found the best plan, you can enroll right from the site. The insurance company for your new plan then informs the company for the older plan of the change.

The change goes into effect on Jan. 1.

Don't delay. That Dec. 7 deadline will be here before you know it.