Medicare prescription drug coverage, or Medicare Part D, is a supplement to Original Medicare that covers the costs incurred for prescription drugs, outside of your existing Medicare part A and Part B coverage. These plans are sold by private companies to be paired with Original Medicare, Medicare Supplemental Insurance, and Medicare Advantage plans that do not have prescription coverage attached to them already. To be eligible for Medicare Part D You must be enrolled in Medicare Part A and/or Part B and live in an area where a Part D product is offered. Many professionals advise enrolling in a Part D plan, even you don’t take prescription medication.
Enrollment in Part D can be done at the same time as Parts A and B. The most advantageous time to purchase Part D is during your “Initial Enrollment Period“ (IEP). This is the 60-day period after enrolling in Medicare Part B. Failure to enroll in Part D during the proper enrollment periods may cause you to incur a penalty, usually in the form of higher premiums. In addition to the IEP, you may also avoid the penalty if you qualify for a “Special Enrollment Period“ (SEP). Certain life changing circumstances can qualify you for an SEP, such as changing where you live, losing your coverage, or the Medicare program terminating your plan’s contract. Depending on your income level, you may qualify for cost assistance. There are four tiers of cost assistance, each with varying levels of coverage.
