Prescription medications can be an important part of your healthcare expenses. Medicare Part D is designed to help people with Medicare manage the cost of covered prescription drugs. Choosing coverage, however, involves more than simply comparing monthly premiums.
What Is Medicare Part D?
Medicare Part D provides prescription drug coverage through Medicare-approved private insurance plans. You may receive drug coverage through a standalone Medicare drug plan or through certain Medicare Advantage plans that include prescription drug coverage. Each plan has its own costs, covered medications, and pharmacy network.
Check the Plan’s Drug List
A Medicare drug plan’s list of covered medications is called its formulary. Because formularies can differ between plans, it is important to check whether the medications you currently take are covered by the plan you are considering.
Look Beyond the Monthly Premium
- Monthly premiums
- An annual deductible
- Copayments
- Coinsurance
Your Pharmacy Can Make a Difference
Medicare drug plans generally have pharmacy networks, and some plans designate certain locations as preferred in-network pharmacies. Using a preferred pharmacy may reduce your out-of-pocket prescription costs. Some plans also offer mail-order options for medications you take regularly.
Do Not Forget About Late Enrollment
Going without Medicare drug coverage or other creditable prescription drug coverage for 63 days or more after you are eligible may result in a Part D late enrollment penalty. Understanding Medicare enrollment periods can help you avoid missing important deadlines.
Compare Based on Your Actual Medications
- Every medication you take
- Dosage and frequency
- Your preferred pharmacy
- Whether you prefer retail or mail-order prescriptions
Need Help Understanding Your Medicare Options?
Simple Medicare Choices can help you understand Medicare Part D, prescription drug coverage, Medicare Advantage plans, and other Medicare plan options so you can compare coverage based on your needs.
