Medicare offers prescription drug coverage (Part D) for everyone with Medicare. To get Medicare Part D drug coverage, you must join a Medicare drug plan. Medicare drug plans are run by insurance companies and other private companies approved by Medicare. Each plan can vary in cost and drugs covered. Even if you don’t take a lot of prescription drugs now, you should still consider joining a Medicare drug plan.
If you join a Medicare drug plan, you usually pay a separate monthly premium in addition to your Part B premium. There are two ways to get Medicare prescription drug coverage:
- Join a Medicare Prescription Drug Plan. These plans (sometimes called “PDPs”) add drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private Fee-for-Service (PFFS) Plans, and Medicare Medical Savings Account (MSA) Plans.
- Join a Medicare Advantage Plan (like an HMO or PPO) or another Medicare health plan that includes prescription drug coverage. You get all of your Medicare coverage (Part A and Part B) and prescription drugs (Part D) through these plans. These plans are sometimes called “MA-PDs.”
Even if you wait to sign up for Medicare drug coverage, you won’t have to pay a late-enrollment penalty if you have been covered under certain other types of prescription drug coverage, called “creditable prescription drug coverage.” You may not have to pay a late-enrollment penalty if you join later and you have creditable coverage through another source. This could include drug coverage from a former employer or union, TRICARE, the Department of Veterans Affairs, or certain Medigap policies. Your current prescription drug coverage is required to tell you each year whether the drug coverage you have is creditable. Keep this annual notice, as you may need it if you decide to enroll in a Medicare drug plan later.
