Prescription Drug Plans (Part D)
How does Medicare drug coverage work?
Medicare drug coverage (Part D) helps pay for prescription drugs you need. It’s optional and offered to everyone with Medicare. Even if you don’t take prescription drugs now, consider getting Medicare drug coverage. If you decide not to get it when you’re first eligible, and you don’t have other creditable prescription drug coverage (like drug coverage from an employer or union) or get Extra Help, you’ll likely pay a late enrollment penalty if you join a plan later. Generally, you’ll pay this penalty for as long as you have Medicare drug coverage (see pages 83-84). To get Medicare drug coverage, you must join a Medicare-approved plan that offers drug coverage. Each plan can vary in cost and specific drugs covered. Visit Medicare.gov/plan-compare to find and compare plans in your area. There are 2 ways to get Medicare drug coverage (Part D):
- Medicare drug plans. These plans add Medicare drug coverage (Part D) to Original Medicare, some Medicare Cost Plans, some Medicare Advantage Private Fee-for-Service plans, and Medicare Advantage Medical Savings Account plans. You must have Part A and/or Part B to join a separate Medicare drug plan.
- Medicare Advantage Plans or other Medicare health plans with drug coverage. You get your Part A, Part B, and Medicare drug coverage (Part D) through these plans. Remember, you must have Part A and Part B to join a Medicare Advantage Plan, and not all Medicare Advantage Plans offer drug coverage.
In either case, you must live in the service area of the plan you want to join and be lawfully present in the U.S. Medicare drug plans and Medicare health plans with drug coverage are called “Medicare drug coverage” in this handbook.