Medicare Part D
WHAT IS MEDICARE PART D
Medicare Part D is an optional, privately run insurance program that helps Medicare beneficiaries pay for brand-name and generic prescription drugs. Available to everyone with Medicare, it covers outpatient prescription medication through stand-alone plans or as part of some Medicare Advantage Plans.
How it works:
It is offered through private insurance companies approved by Medicare, not directly by the federal government.
Coverage:
Plans cover a wide range of prescription drugs.
Each plan has a “formulary,” which is a list of covered drugs.Costs:
Costs vary by plan but typically include a monthly premium, deductibles, and co-pays.
Penalty:
If you do not join a plan when first eligible and do not have other “creditable” prescription coverage (like from a former employer), you may face a late enrollment penalty.
Enrollment:
You can enroll in a stand-alone Prescription Drug Plan (PDP) to go with Original Medicare (Part A and/or B) or choose a Medicare Advantage Plan that includes drug coverage.
Most people can join when turning 65 or using specific “Election” periods.Extra Help:
People with limited income and resources may qualify for a program called "Extra Help" to help pay for premiums, deductibles, and copayments.