Prescription Drug Coverage

• Medicare prescription drug coverage is available only through private health insurers that are approved by Medicare
• You can purchase a stand-alone plan (MA-PD), or your drug coverage can be bundled with your Medicare Advantage plan (Part C)
• Prices and coverage may vary from plan to plan, so it pays to shop around
• If you don’t sign up for prescription drug coverage (or have some other form of creditable drug coverage) as soon as you’re eligible, you’ll be charged a late enrollment penalty

When to Enroll

Because Part D has a late enrollment penalty, just like Part B, it’s important that you enroll as soon as you’re eligible. You’re eligible when:

• You turn 65 (you may enroll starting 3 months before your 65th birthday, the month of your birthday, and up to 3 months after your birth month)
• You’re under 65 and disabled
• You enroll in Part B (whether or not you have Part A)

If you don’t enroll at one of these times, you can be charged a late enrollment penalty. In addition, you can be penalized anytime you go a period of 63 days or more without a Medicare prescription drug plan or some other creditable coverage (from a former employer, for example).

The penalty itself is calculated by multiplying 1% of the national base beneficiary premium by the number of full months you were eligible for coverage, but didn’t enroll. Learn more about the Part D late enrollment penalty.

Two Ways to Get Coverage

While Medicare prescription drug coverage is only available through private health insurers, there are two ways you can receive your coverage:

• A stand-alone Medicare Prescription Drug Plan (MA-PD)
• A Medicare Advantage (Part C) plan with prescription drug coverage included