What is Part D, Medicare Prescription Drug Coverage?
Medicare Part D is your prescription drug coverage and it helps cover the cost of your prescription drugs. It is run by Medicare-approved, private insurance companies.
How to Enroll in Part D, Medicare Prescription Drug Coverage
There are two ways to enroll in Medicare Part D drug coverage:
Original Medicare with a stand-alone drug plan
Medicare Advantage plan
Most Medicare drug plans have their own list of covered drugs, known as a formulary. Each formulary has tiers or levels, with the lower tiers representing the lower-cost medications.
A great resource for finding a drug plan is on the Prescription Drug Plan Finder located on the Medicare.gov website. It can be used to find a plan that suits your medication needs. It is important to understand how drug coverage works.
Part D Drug Plan Overview
Stage 1-Annual Deductible: If your plan charges a deductible, it is the amount you pay before your coverage begins.
Stage 2-Initial Coverage Period: When the total cost of your drugs for the given year equals $2,000—including both the deductible and what you have paid for prescriptions— you move to Stage 3.
Stage 3-Catastrophic Coverage: When the total out of pocket reaches $2,000 you pay zero for the rest of the year. (Deductible plus cost of prescriptions.)
Penalties to Avoid
Do not delay in enrolling in a Part D drug plan. If you miss your Initial Enrollment Period when you are first eligible, you may pay a penalty that will stay with you for the rest of your life.
If you have “creditable” drug coverage through an employer you may not need to sign up for Part D when you turn 65. If you lose the coverage, you’ll have 63 days to enroll without a penalty.
Help Paying for Part D Drug Costs
If you have limited income and resources, you may qualify for Extra Help paying for your prescription drug costs. Extra Help is a Medicare program designed to help people pay their Medicare prescription drug costs. There are income and resource limits to qualify. For more information or to apply, call Social Security at 1-800-772-1213 or visit SSA online.