Americans spend more than any other country in the develop world for their prescribed medications. Unfortunately, Original Medicare (Part A and Part B) does not cover prescribed medications and there are penalties for not having a plan to cover prescribed medications. During your Initial Enrollment Period, you can buy Part D as a standalone plan or combined with a Medicare Advantage plan.
Part D only covers prescribed medications. The medications are divided into formulary tiers and the copay of each drug depends on which tier it falls under.
There is two ways you can buy Part D: Prescription Drug Coverage
- Part C may have Part D included
- Standalone Part D Plan
If you buy the wrong plan, then you can change it during the Annual Enrollment Period(AEP) that runs through Oct 15-Dec 7, or if you qualify for a special enrollment period then you can change it before AEP. Having the right plan is essential to avoid all the costs of prescription drugs as you move through the four stages. Several plans are available in the market with their own tiers and some costs more than other. It is important to find out how much each drug will cost you in the plan that you are considering to buy.
Part D has four stages, and you pay for your co-pay or coinsurance for your drugs as you move through the four stages. Every year you start at the Annual Deductible stage or the Initial Coverage Stage if your plan has no deductible. If you are taking drugs that are costly then this will move you to the Coverage Gap. At the Coverage Gap you are more responsible for your drug costs.