Prescription Drug Plans (Part D)

Overview

Medicare Part D is prescription drug coverage offered by Medicare-approved private companies. It is available to anyone with Original Medicare (Parts A and B) or with a Medicare Advantage plan that includes drug coverage.

How It Works

You pay a premium (and possibly deductibles and coinsurance) and the plan helps pay for your covered prescription drugs according to its rules. Each plan has its own list of covered drugs called a formulary.

Who May Qualify

Generally, you are eligible for Part D if you have Original Medicare (Parts A and B) and live in the plan's service area. Enrollment happens during specific periods of the year.

Options and costs vary by plan and location.

Key Things to Consider

• Formularies: the plan's list of covered drugs; verify your medications are included.
• Drug tiers: each tier has a different cost; lower tiers usually cost less.
• Pharmacy networks: some plans offer better pricing at in-network pharmacies.
• Premiums and cost sharing: compare the monthly premium, deductibles, and copays.
• The importance of checking your medications before selecting a plan to avoid unexpected costs.