Medicare Part D — Prescription Drug Coverage
The component of Medicare that provides prescription drug coverage through private plans approved by Medicare.
Official source: medicare.gov
Stand-alone Medicare Part D plans are available for people who have Original Medicare. Many Medicare Advantage plans also include Part D coverage. To qualify for Part D, you must be enrolled in Medicare. If your income is higher than a certain level, you may have to pay an Income-Related Monthly Adjustment Amount (IRMAA), which adds to your monthly premium.
Starting in 2025, the Inflation Reduction Act capped annual out-of-pocket costs for prescription drugs under Medicare Part D. The cap is $2,100 per year in 2026 (up from $2,000 in 2025). This change helps protect beneficiaries from high drug costs.
It is important to enroll in Part D when you first become eligible. If you wait and sign up later, you may face a late enrollment penalty, which can increase your monthly premium. For example, if you are eligible at age 65 but wait until you are 70 to enroll, you could pay more each month for your coverage.
In real life
- A senior citizen enrolls in a Part D plan to help pay for their heart medication.
- Someone with Medicare chooses a Part D plan that covers the specific insulin they need.
- A person with Medicare compares different Part D plans to find one that fits their budget and their prescriptions.
Also known as
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Frequently asked questions about Medicare Part D
What is Medicare Part D?+
The component of Medicare that provides prescription drug coverage through private plans approved by Medicare. Stand-alone Part D plans are available for those on Original Medicare; Medicare Advantage plans often include Part D.
Who qualifies for Medicare Part D?+
→ Enroll in Part D when you first become eligible to avoid a late enrollment penalty.
How do I apply for Medicare Part D?+
Most people are enrolled automatically at 65. To pick a plan or sign up manually, go to medicare.gov or call your free SHIP counselor.
Where can I get help?+
Call your free State Health Insurance Assistance Program (SHIP) for one-on-one Medicare counseling at no cost, or compare plans at medicare.gov.
Source: medicare.gov