Important information on part D Drug coverage

Part D (Drug coverage): Helps cover the cost of prescription drugs (including many recommended shots or vaccines). You join a Medicare drug plan in addition to Original Medicare Original Medicare A fee-for-service health insurance program that has 2 parts: Part A and Part B. You typically pay a portion of the costs for covered services as you get them. Under Original Medicare, you don’t have coverage through a Medicare Advantage Plan or another type of Medicare health plan.   Refer to Medicare glossary for more details.   , or you get it by joining a Medicare Advantage Plan with drug coverage. Plans that offer Medicare drug coverage are run by private insurance companies that follow rules set by Medicare.

Monthly premiums vary based on which plan you join. The amount can change each year. You may also have to pay an extra amount each month based on your income.  Who pays an extra amount because of income?   You might pay a penalty if you:  Don’t join a Medicare drug plan when you first get Medicare, and Go 63 days or more without creditable drug coverage (coverage that’s similar in value to Part D).

You’ll pay an extra 1% for each month (that’s 12% a year) you could have signed up for Part D, but didn’t. The penalty is added to your monthly premium. It’s not a one-time late fee — you’ll pay the penalty each month for as long as you have Part D coverage (even if you change plans).

 If you have creditable drug coverage or if you qualify for Extra Help, you won’t have to pay a penalty.

Most plans charge a deductible, an amount you pay before the plan starts to pay, for prescriptions you fill. The deductible amount varies based on which plan you join.  Your actual costs vary depending on the medicines you take, if they are on your plan’s list of covered drugs, and which pharmacy you use.

Get help with drug costs If you have limited income and resources, you may be able to get Extra Help to pay your plan premiums and other drug costs (like deductibles, coinsurance, and copays). If you qualify, you won’t have to pay the Part D late enrollment penalty

Extra Help is a program to help people with limited income and resources pay Medicare prescription drug program costs, like premiums, deductibles, and coinsurance. If you qualify for Extra Help, you won't pay a late enrollment penalty when you join a Medicare drug plan.  If you get Extra Help but you’re not sure if you're paying the right amount, call your drug plan. Your plan may ask you to give information to help them check the level of Extra Help you should get.