How Medicare Part D Works

How Medicare Part D Works

Anyone who has faced an illness, injury, or chronic condition may understand that prescription drugs can be necessary to help you live a healthy and active life. As Medicare beneficiaries, we can be vulnerable to the expenses of medications, and unexpected needs can take a toll on the most carefully planned budget. With retirement looming, many beneficiaries can’t risk facing unforeseen out-of-pocket costs. Medicare Part D offers optional prescription drug benefits that can help cover some of these costs.

Part D plans are available to all people with Medicare. Stand-alone Prescription Drug Plans (PDPs) are offered for those people with Original Medicare, but Medicare Advantage plans with prescription drug coverage (MA-PDs) offer an alternative choice. PDPs and MA-PDs are offered by private insurance companies approved by Medicare, and costs and benefits vary. If you do not enroll in a Part D plan during your Initial Enrollment Period, you will likely have to pay a late enrollment penalty when you decide to join later.

You will pay a monthly premium, yearly deductibles, and copayments or coinsurance for drug coverage. The costs can vary based on the plan’s formulary, the drugs you use (generic vs. brand name), the pharmacy you visit, and whether you get Extra Help paying your Medicare Part D costs. It is important to review the plans available in your area, and compare them based on your own personal needs.

For instance, if you currently require a specific medication, you may want to consider a plan that includes that particular drug on its formulary, or list of covered drugs. Each plan can offer drugs at varying levels, or tiers, of cost, as well. A little time comparing plans can save you money later, visit or contact one of our licensed sales agents at 888.956.735 to compare plans available in your area.

If you meet certain income and resource limits, you may qualify for Extra Help from Medicare to pay the costs of Medicare prescription drug coverage. In 2021, drug costs for most people who qualify will be no more than $3.70 for each generic drug and $9.20 for each brand-name covered drug.

If you are approaching Medicare eligibility, now is the time to consider adding prescription drug coverage to your Medicare benefits. Compare and review prescription drug plans and find the one that will offer you the protection you deserve at