When studying to become an accountant, it never occurred to me to take psychology classes; but in fact, much of the work we do involves areas of clients’ lives that are deeply personal. Yet no one ever trains us in divorce consulting, human resources, vehicle purchasing, credit counseling, health insurance brokerage, or, in the case of this recent interesting article I’d like to share: prescription drug coverage.
The author, James Sullivan, is a financial planner who specializes in working with clients suffering from chronic illnesses (and their families). He recently published a piece on how to assist clients when choosing a Medicare Part D prescription coverage plan, and related tips on saving money at the pharmacy. He offers a simple follow-along example that illustrates the main points:
Clients need to consider more than cost when choosing a Part D plan. Before selecting one, they should think about several questions:
Is your prescription drug(s) on the plan’s formulary?
Is your favorite local pharmacy in-network, a preferred pharmacy, or out-of-network?
What is your out-of-pocket cost if you use the local pharmacy versus using mail order?
Are you comfortable using mail order?
Once these questions are answered, the client should consider the plan’s annual deductible, the co-payments and co-insurance, its drug tiers, and any drug restrictions.
I encourage you to read the full article in Journal of Accountancy here, especially for the real-life illustration that offers some great tips.