What Is Medicare Plan D?

Learn how Medicare Plan D can help with your daily prescription medication costs. How to know what your out of pocket costs for medications will be.

There are four major Medicare plans. Part A is for hospitalization; Part B is for medical visits and treatments; Part C is a plan that covers all of Parts A, B, and D; and Part D is for prescription drugs. Part D is covered by private insurance companies. To enroll in Part D, an individual must already be participating in Parts A and B. The purpose of Part D is to make necessary medications affordable for people without drug coverage on any other policy and for those with limited resources.

What Is The Medicare Plan D Enrollment Process?

The prescription drug program is provided by individual insurance companies. There is a monthly premium paid directly to the insurance company. Depending on a person’s level of income, there may be an additional monthly fee imposed by the Medicare program and deducted from the monthly Social Security payment. The Medicare Plan D fee is based on either individual or joint family income, with a current maximum additional fee for individuals with income of $214,000 or more and for couples with income of $428,000 or more. Each enrollee will need to select an insurance plan and a company that will cover his or her part D prescription needs.

Does The Plan D Cover All Prescription Drugs?

Which drugs are covered and how much they will cost is determined by the insurance company. It is important to research which Medicare Plan D insurance companies cover those prescription medications that an individual needs to have. Not all drugs are covered by all insurance companies. Some insurance companies may impose a small co-payment. Medicare related drug program payments are far less expensive than general prescription drug plans and provide a greater savings for those currently without any prescription drug coverage.

Do All Pharmacies Accept Plan D Payments?

Depending on the insurance company’s guidelines for coverage, a local pharmacy may not be included in someone’s plan. Some insurance companies may require the use of a mail order service or the use of a certain chain pharmacy that is available across the country. Read more detailed information at www.medicare.gov/cost .

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