Medicare Plans for Prescription Drug Coverage

Part D is Medicare regulated and approved prescription drug coverage offered by private insurance companies. Except for certain situations, you should enroll in Part D when you first become eligible to avoid penalties. Part D was designed in part, to aid Medicare enrollees lower their prescription drug costs and to protect against future costs. It also provides access to medically necessary drugs via a Medicare-approved prescription drug plan.

Keep in mind that a plan’s premium (monthly cost of the plan), drug formulary (list of covered medications) and copay amounts will vary by plan and by insurance company. Medicare Part D plans all follow the same structure designed by Medicare: Annual Deductible, Initial Coverage (prescription copays), the Coverage Gap or “donut-hole” (projected to be closed by 2020), and Catastrophic Coverage.

Medicare Part D coverage can be obtained by purchasing a “stand-alone” drug plan or by purchasing a Medicare Advantage plan that includes Part D coverage as part of the plan.