Coverage Options
Prescription Drug Plans (Part D)
Medicare Part D helps cover the cost of prescription medications. Choosing the right plan based on your specific drugs can save you hundreds of dollars each year.
How Medicare Part D Works
Medicare Part D is prescription drug coverage offered through private insurance companies approved by Medicare. You can get Part D as a standalone plan (PDP) if you have Original Medicare, or it may be included in a Medicare Advantage plan (MAPD).
Each Part D plan has a formulary — a list of covered drugs organized into tiers. Your cost-sharing depends on which tier your medication falls into. Plans vary significantly in premiums, deductibles, and which drugs they cover, so comparing plans based on your specific medications is essential.
Key Things to Know
- Late Enrollment Penalty: If you do not enroll in Part D when first eligible and go without creditable drug coverage, you may pay a permanent late enrollment penalty.
- Annual Plan Review: Drug formularies change every year. A plan that covered your medications this year may not cover them next year — or may charge more.
- Extra Help (LIS): If you have limited income and resources, you may qualify for Extra Help — a federal program that reduces Part D costs significantly.
- Catastrophic Coverage: Starting in 2025, out-of-pocket drug costs are capped at $2,000 per year, providing significant protection for high-cost medications.
Not sure which drug plan covers your medications?
Jeremy will compare Part D plans based on your specific prescriptions — at no cost to you.