Medicare Part D

What is Medicare

Part D

Medicare Part D is a program that helps cover the cost of prescription medications obtained at pharmacies. Enrollment in Part D is not automatic with Medicare; you need to actively sign up for it. These plans are offered by private health insurance companies, but they must adhere to federal regulations. While enrolling in Part D is optional, lacking prescription drug coverage can be risky. Failure to enroll when first eligible can result in substantial, lasting penalties if you decide to join later.

For your Part D plan, you pay a monthly premium to an insurance company. You'll also have an annual deductible and will need to pay a copay or a portion of the drug's cost. Each Medicare prescription drug plan includes a list of covered medications known as a formulary, which categorizes drugs into Tiers 1-5. Medications in lower tiers cost less. To receive Medicare drug coverage, you must enroll in a Medicare-approved plan that provides this coverage. The costs and specific drugs covered can differ between plans.