Medicare Part D prescription drug coverage helps pay for prescription drugs and is offered through Medicare-approved private insurance companies. It is optional and offered to everyone with Medicare. If you do not enroll into Part D coverage when you are first eligible, and you do not have creditable prescription drug coverage (like drug coverage from an employer, union, PACE, or VA) or get extra help, you’ll likely pay a late enrollment penalty if you join later. Generally, you will pay this penalty as long as you have Medicare drug coverage. You can receive Part D coverage through a stand-alone prescription drug plan (PDP) or included in a Medicare Advantage prescription drug plan (MAPD).
What does Medicare Part D cover?
- Brand name and generic prescription drugs
- Coverage and cost vary by plan.
- Each plan has a formulary that lists the prescription drugs the plan covers.
What costs are you responsible for when enrolling into a Part D plan?
- Your Part D plan monthly premium if applicable (You may have to pay an extra amount for your Medicare drug coverage (Part D) premium if your modified adjusted gross income is above a certain amount.)
- Part D penalty if applicable
- Out-of-pocket costs such as copays, coinsurance, and deductibles associated with the plan that you choose.