What is Prescription Drug Coverage (Part D)?
Prescription drug coverage (also known as Part D) are supplemental insurance plans you can enroll in to provide coverage for your prescription drugs.
As mentioned earlier in this video series, you must enroll in Part D prescription drug coverage when you first become eligible for Medicare in order to avoid Late Enrollment Penalties.
- The only exception is if you are receiving coverage through an employer, and that policy provides drug coverage as good as Medicare.
- Importantly, you must enroll to avoid penalties even if you are NOT currently taking any prescription drugs.
How to get Prescription Drug Coverage (Part D)
There are two (2) ways to enroll in Part D prescription drug coverage:
- The first is to enroll in a Medicare Advantage plan that bundles Part D prescription drug coverage at no additional cost.
- The second is to purchase a standalone Part D prescription drug plan. This option would be relevant for people who are enrolled in default Original Medicare Parts A and B and includes anyone who purchases a Medicare Supplement plan to help cover the “gaps” not covered by Original Medicare Parts A and B.
Other Information
Regardless of how you get your Part D prescription drug coverage, you should ALWAYS check to see if your drugs are covered and at what cost under each plan. The same drug can be covered very differently between Plan X and Plan Y, and not checking the differences could cost you hundreds if not thousands of dollars extra each year.
