What Is Medicare Part D?

Medicare Part D is the prescription drug coverage benefit that is provided by Medicare. It is an insurance that covers brand-name as well as generic prescription drugs and offers protection to individuals who have very high prescription drug expenses. 

Eligibility for Medicare Part D

Anybody who has, or is eligible for Medicare Part A or Part B is automatically eligible for the Medicare Part D, regardless of health status, income and resources or current prescription expenses. There are no additional screenings for pre-existing conditions or high drug costs. Anybody who is eligible can enroll in the plan and avail of the benefits. Even those who have only Medicare Part A and have never had Medicare Part B or had Part B and then stopped it are still eligible for coverage by Medicare Part D.

Individuals who wish to join Medicare Part D may do so when they first become eligible for Medicare, which is from three months before they turn 65 years until three months after they turn 65. It is not compulsory or necessary to join Medicare Prescription Drug Coverage at the same time as Medicare Part A or B. Individuals who are eligible to enroll and do not will have to pay a penalty if they join after the six month period during which they were initially eligible to enroll. However, those who already have comparable drug coverage either through an employer or any other plan can choose to keep that coverage and even if they decide to join Medicare Part D later on, they will not have to pay the late enrollment penalty.

Advantages of Medicare Part D

Medicare prescription drug coverage protects individuals from unexpected, high drug expenses. It is beneficial even for those who currently do not use a lot of prescription drugs, as expenses for prescription drugs can increase dramatically with age or unexpectedly in case of any illness.  For those who have limited income and resources and need extra help, Medicare covers almost all their prescription drug costs.

How Medicare Part D works

Individuals can get Medicare prescription drug coverage either by joining a Medicare prescription drug plan or any other Medicare Health Plan that offers drug coverage. Whichever plan they choose, Medicare Part D helps them by covering the brand name and generic drugs that need to be bought at any pharmacy.

Individuals who enroll in the plan will need to pay a monthly premium, which varies depending on the plan that is chosen. They will also need to pay part of the prescription costs, including a coinsurance or a copayment, costs of which vary depending on the chosen drug plan.