A Medicare prescription drug plan (Part D) provides coverage for the prescription drugs you need. A Part D prescription drug plan does not pay for 100% of your prescription costs, but it reduces the amount you will have to pay. A prescription drug must be on the prescription drug plan’s formulary for it to be covered. Coverage and copays are generally based on a drug’s tier–usually Tiers 1-5–with the lower tier drug will generally cost less than a higher tier drug. 

Even if you don’t currently take any prescription drugs, it is recommended to sign up for Part D. If you don’t enroll in a Part D plan, and you don’t have other creditable prescription drug coverage (such as drug coverage through an employer), and you don’t qualify for Extra Help, you’ll likely pay a late enrollment lifetime penalty when you do join.

There are two ways to get Medicare drug coverage:

1.  A stand-alone prescription drug plan: These plans add drug coverage to Original Medicare. You must have Medicare Part A and/or Medicare Part B to join a prescription drug plan.
2. A Medicare Advantage plan: You get all of your Part A, Part B, and drug coverage through these plans, along with additional benefits (i.e. dental, vision and hearing). You must have Part A and Part B to join a Medicare Advantage plan. *Not all Medicare Advantage plans offer drug coverage.