How Does Medicare Coverage Part D Work?

Two Types of Medicare Coverage Part D

Medicare Part D coverage is divided into Medicare Prescription Drug Plans (also called PDPs) and Medicare Advantage Plans (also called MA-PDs).

The Medicare Prescription Drug Plan in Medicare Coverage Part D

The Medicare Prescription Drug Plan is available to those who are already enrolled in Medicare Part A and/or Medicare Part B. Medicare Prescription Drug Plans augment coverage from other prescription drug plans, such as Medicare Private Fee-for-Service plans (PFFS), Medicare Medical Savings Account Plans (MSAs), Medicare Cost Plans, and Original Medicare.

Medicare Prescription Drug Plans differ in cost depending on which drugs are covered and the pharmacies they do business with. Co-insurance, co-payments and deductibles for each plan will be different.

The Medicare Advantage Plan in Medicare Coverage Part D

The Medicare Advantage Plan is available to those who are enrolled in Medicare Plan A and Plan B. In other words, you must be enrolled in both Plan A and Plan B to obtain coverage from the Medicare Advantage Plan. The Medicare Advantage Plan extends coverage to Medicare prescription drugs. Medicare Advantage Plans include all of Medicare Part A and Medicare Part B coverage as well as Medicare Part D prescription drug coverage. These plans include Medicare Health Maintenance Organizations (HMOs), Medicare Special Needs Plans, Preferred Provider Organizations (PPOs), and Private Fee-for-Service Plans.

Note that you will have to drop your Medigap policy if you join the Medicare Advantage Plan.

Enrollment in Medicare Coverage Part D

It is recommended to sign up for Medicare Part D during the initial enrollment period (the period from three months prior to turning 65 to three months after). Note that late enrollment may result in higher monthly payments.

Related posts

1. What Does Medicare Part D Mean For Me?
2. Does Medicare Pay For Prescription Drugs?
3. What is a Prescription Drug Plan (PDP) For Medicare?
4. What is Medicare Advantage?
5. What Happens If I Do Not Enroll In A Medicare Part D Plan?

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