Medicare Part D Guide

What is Medicare Part D?

Part D provides prescription drug coverage through Medicare-approved private plans. You may join a separate drug plan with Original Medicare or receive drug coverage through a Medicare Advantage plan that includes it.

How to compare plans

Plans use formularies, or lists of covered drugs, and may place drugs in different cost-sharing tiers. Check each medication, pharmacy, restrictions, premiums, deductibles, and copayments or coinsurance. The Medicare Plan Finder can help compare plans in your area.

Annual drug spending limit

Part D has an annual out-of-pocket limit for covered prescription drugs, but the limit can change by year and not every expense counts toward it. Check the current Medicare cost page and plan documents. Premiums and non-covered drugs are not the same as covered drug cost sharing.

Late enrollment

A late enrollment penalty may apply if you go 63 days or more without Medicare drug coverage or other creditable drug coverage after your initial enrollment period. The penalty depends on the number of full uncovered months and the national base beneficiary premium. Exceptions, including Extra Help, may apply. See Medicare’s penalty guidance.