Medicare Prescription Drug plans, also referred to as Medicare Part D, are provided and coordinated by private insurance companies that have been approved by Medicare. These plans provide coverage for prescription medications, which are generally not covered by Part A, Part B or Medigap plans. Any beneficiary can sign-up for Medicare Part D as long as they are eligible for Original Medicare, Part A and/or Part B and permanently reside in the service area of a Medicare Prescription Drug plan. Medicare Prescription Drug coverage is optional, but if you don’t enroll in Part D as soon as you’re eligible, you might pay a late-enrollment penalty if you enroll later.
Medicare Part D coverage comes in the form of stand-alone Medicare Prescription Drug plans, which work alongside Original Medicare, or as part of a Medicare Advantage plan, known as a Medicare Advantage Prescription Drug Plan (MAPD).
Out-of-pocket costs for prescription drugs and monthly plan premiums will vary from plan to plan. Each medication covered by a Medicare Prescription Drug plan has a set cost in the form of a co-pay or coinsurance according to a tiered system. Every Medicare Prescription Drug plan has a formulary for your reference, allowing you to pick the plan with the lowest cost for your prescription needs.
Learn more about Medicare Prescription Drug plans here »