Medicare Part D Drug Plans Explained
A Medicare Part D plan, or drug plan, is a stand-alone plan which helps cover the cost of your prescription drugs. Medicare Part D plans are offered by private insurance companies. Part D plans may have premiums, deductibles, and co-pays based on the tier under which your specific drug is classified.
Medicare requires you to enroll in a Medicare Part D plan either as a stand alone plan in conjunction with your Medicare Supplement or as a part of your Medicare Advantage plan. If you do not elect Part D coverage when you are first eligible and you sign up later, you will be charged a late enrollment penalty each month in which you have Part D coverage after your late enrollment.
Medicare Part D plans are also subject to the Annual Enrollment Period (AEP) from October 15th – December 7th every year and plans do change each year. Each fall, you need to review the available Part D drug plans for the coming year and your current medications with your agent to ensure you are on the optimal plan for your individual situation for the coming calendar year.