Prescription Drug Plans
Medicare Part D helps cover the cost of prescription medications. Find the right plan for your prescriptions.
What Is Medicare Part D?
Medicare Part D is prescription drug coverage for Medicare beneficiaries. It's offered by private insurance companies approved by Medicare.
Part D helps cover the cost of prescription medications, but you'll still pay a monthly premium, annual deductible, and copayments or coinsurance for each drug.
If you don't sign up for Part D when you're first eligible and don't have other creditable prescription coverage, you'll likely have to pay a late enrollment penalty.
Key Facts
- Plan Type:Part D (Standalone)
- Monthly Premium:$0 - $100+ (varies by plan)
- Deductible:$0 - $505 per year
- Late Penalty:10% of Part B premium per year
- Enrollment:Annual Enrollment Period
Types of Part D Plans
There are two main types of Medicare prescription drug coverage.
Standalone Part D
A separate prescription drug plan that you add to your Original Medicare (Part A and Part B). This is the most common type of Part D coverage.
Best for: Those with Original Medicare who need prescription drug coverage.
Medicare Advantage with Part D
Medicare Advantage plans (Part C) that include prescription drug coverage. This combines your medical and drug coverage into one plan.
Best for: Those who want all their coverage in one plan with a single premium.
Understanding Formularies
A formulary is the list of prescription drugs covered by a Part D plan. Each plan has its own formulary organized by "tiers."
Tier 1
Generic drugs — lowest copay (usually $0-$10)
Tier 2
Preferred brand drugs — moderate copay (usually $15-$47)
Tier 3-5
Non-preferred and specialty drugs — higher copays/coinsurance
Important: Your specific medications must be on the plan's formulary. We'll help you verify coverage before enrolling.
Prescription Drug Plan FAQs
Common questions about Medicare Part D.
Not necessarily. Most Medicare Advantage plans include prescription drug coverage (Part D). However, if your Medicare Advantage plan doesn't include drug coverage, you may need a separate Part D plan.
If you don't sign up for Part D when you're first eligible and don't have other creditable prescription coverage, you'll pay a late enrollment penalty. This is 10% of the average Part D premium multiplied by the number of years you were eligible but didn't enroll. This penalty is added to your monthly premium and lasts as long as you have Part D.
The best plan for you depends on your specific medications, preferred pharmacy, and budget. We recommend reviewing your prescriptions and comparing plans each year during Annual Enrollment, as formularies and costs can change.