Medicare Part D (Prescription Drug Insurance)
What is Medicare Part D:
Medicare Part D prescription drug coverage often referred to as Part D, is provided and coordinated by Medicare-approved private insurance companies.
What’s covered in general under Part D:
Each Medicare Prescription Drug Plan has its own list of covered drugs (called a formulary). Many Medicare drug plans place drugs into different “tiers” on their formularies. Drugs in each tier have a different cost. A Medicare drug plan can make some changes to its formulary during the year within guidelines set by Medicare. If the change involves a drug you’re currently taking, your plan must Provide written notice to you at least 60 days prior to the date the change becomes effective
Who is eligible for Part D:
Any beneficiary who is eligible for Original Medicare, Part A and/or Part B, and permanently resides in the service area of a Medicare Prescription Drug Plan, can sign-up for Medicare Part D. Medicare Part D coverage is optional, but if you don’t enroll in Part D as soon as you’re eligible, you might pay a late-enrollment penalty if you enroll later.
How much does Part D cost:
- Monthly Premium: Part D premiums range from $10-$100 per month (depending on the plans available in your area and on the particular plan you choose).
- Part D Deductible & Coinsurance: The maximum deductible, the amount you must pay out-of-pocket before Medicare will contribute to your prescription costs, in 2017 is $400. After you meet the deductible, Medicare will pay roughly 75% of your prescription costs.