Prescription drugs are not covered by Original Medicare Parts A and B or Medigap plans. Medicare Prescription Drug (Part D) plans are offered by Medicare-approved private insurance companies to limit out-of-pocket costs for medications. These plans put medications into tiers, with each tier having a certain copay or coinsurance. Each Medicare Part D plan provides a formulary, so you can see what the coinsurance/copay would be for each drug. This way, you can select the plan that best matches your prescription needs.
Medicare Prescription Drug plans are provided and coordinated by private insurance companies contracted with Medicare. Any beneficiary who is eligible for Original Medicare, Part A and/or Part B, and is a permanent resident of the Medicare Prescription Drug Plan service area, can sign-up for Medicare Part D. Medicare Prescription Drug coverage is optional. You might pay a late-enrollment penalty if you enroll later, rather than enrolling as soon as you’re eligible.
You can get Medicare Part D coverage through a stand-alone Medicare Prescription Drug Plan if you’re enrolled in Original Medicare, or, through a Part C plan, by enrolling in a Medicare Advantage plan that includes drug benefits, also known as a Medicare Advantage Prescription Drug Plan (MAPD). Different insurers offer different types of plans, so your monthly plan premiums and out-of-pocket expenses for prescription drugs will vary from plan to plan.
For more information about Medicare Prescription Drug plans, click here.