Medicare Part D Coverage
Medicare Part D provides prescription drug coverage, which helps cover the costs of prescription drugs. You can purchase Part D through private insurance companies that have been approved by Medicare. Part D plans have their own monthly premiums, which vary depending on the plan. Typically, these plans include cost-sharing, such as copays or coinsurance for your prescriptions.
Part D is optional, but if you decide to participate, it's generally recommended to do when you first become eligible for Medicare. Waiting can incur late enrollment penalties, which are added to your monthly premium. Part D plans have a "coverage gap" where you may have to pay a larger portion of your prescription costs. However, this gap has been gradually closing. It's important to review your needs and compare different Part D plans to find one that best fits your situation. We recommend meeting with a qualified advisor for added knowledge.
You may choose not to enroll in Part D when you're first eligible. You can do so without the late enrollment penalty if you have "creditable prescription drug coverage" from another source (like an employer plan). You may also delay enrolling without penalty if you have "creditable coverage," meaning your existing prescription drug coverage is at least as good as the standard Medicare Part D coverage. If you enroll in a Medicare Advantage (Part C) plan (which we will discuss next week), you may get prescription coverage through that plan and not need a separate Part D plan.
People who qualify for the "Extra Help" program, also known as the Low Income Subsidy (LIS) have different rules, and may be enrolled into a plan.
For the most accurate and up-to-date information, please visit Medicare.gov (the official U.S. government website) or the Social Security Administration, who handles Medicare enrollment.
