<prompt> Human: Hi rpersonalfinance,I was helping my grandparents organize their finances and I see my grandfather has been paying 66 per month for Humanas Medicare Part D Prescription Drug Plan. Over 24 months he has had 20 pharmacy prescription claims of which only 80 has been been paid for by the plan while over that same period he has paid 280 for these prescriptions out of pocket and paid 1,600 in premiums total.Am I reading this wrong or is he essentially paying 1,600 to get 80 back in value? Wouldnt it be cheaper to just cancel the insurance and pay for these prescriptions outright? What am I missing here?  <response>: To add to what others have been saying, insurance isnt meant to protect against nickel and dime stuff. No matter what insurance you have, you are still expected to pay your own nickels and dimes.Thats for any kind of insurance.If you have car insurance, its typical to have to pay the first 250, 500, or 1000 of the cost of damage yourself and then insurance will pay the remainder. The more nickels and dimes you afford to pay here, the lower your insurance costs.If your grandparents want to not pay these nickel and dimes, its the same as if they want to pay 0 deductible with car insurance. The amount paid for the insurance will go up dramatically.Insurance is supposed to be a thing you pay for and dont use. Its not designed to be a thing you pay for and then you use it all the time and somehow you end up saving money.See life insurance. The idea is to pay for it and then not die. You dont pay for life insurance hoping to die enough times so its worth it. People also dont crash their cars over and over hoping to get their moneys worth with car insurance.The grandparents should be happy that they dont actually need to use the insurance. Some people out there have to spend thousands a month on prescription drugs. Those people would probably happily trade their conditions for those of your grandparents.Just a side note - If the grandparents cancel the insurance, they may very well develop such a condition and need thousands a month for prescription drugs and they will wish they kept the insurance. With the way things are going, its likely they wouldnt be able to get back on insurance after that point. 