PART D DRUG PLAN
Medicare Part D helps with the cost of prescription drugs. You can get drug coverage with a standalone Part D plan or as part of a Medicare Advantage plan also known as Part C. Typically, plans will have a network of pharmacies and many plans offer mail order. Often discounts are provided for utilizing preferred network pharmacies. These discounts vary based on the specific plan and the insurance company offering the plan. Plans are offered by private insurance companies approved by Medicare. Your plan choices vary based on where you live. Coverage and costs beyond standards set by Medicare vary from plan to plan.
ELIGIBILITY: You must be enrolled in Medicare Part A or Part B to be eligible for a Part D Plan
You must enroll when first eligible for Part D coverage otherwise you are subject to a Late Enrollment Penalty – this penalty is charged every month for as long as you have Part D coverage
Part D has four stages. You pay a share of the cost for your drugs in each stage up to a limit (established by the government each calendar year). You may not reach all stages. The cycle resets at the beginning of each calendar year.
PART D PLANS INCLUDE
Types of drugs most commonly prescribed according to federal standards
Specific brand name and generic drugs are listed in the plan’s formulary or drug list
Commercially available vaccines not covered by Medicare Part B
Annual Deductible – some plans have a deductible you pay 100% of the costs for drugs that are subject to your plan’s deductible
Initial Coverage – your copays or coinsurance as outlined by your plan up to a set limit
Coverage gap or donut hole – you pay a percentage of the cost up to the out-of-pocket limit
Catastrophic – you pay reduced copays for the remainder of the calendar year