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. IRMAA surcharges also apply to Part D premiums for higher-income beneficiaries. The Inflation Reduction Act capped out-of-pocket Medicare drug costs at $2,000/year starting 2025.
→ Enroll in Part D when you first become eligible to avoid a late enrollment penalty.
Also known as
Related terms
- IRMAA
An additional premium surcharge added to Medicare Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds, based on modified adjusted gross income (MAGI) from two years prior.
- Medicare Advantage
A private health plan that combines Medicare Part A and Part B coverage and often includes Part D (prescription drugs), sold by insurance companies approved by Medicare, offering an alternative to Original Medicare.
- Medicare Part B
The component of Original Medicare that covers outpatient care, doctor visits, preventive services, ambulance services, and durable medical equipment.
- Medigap
Private insurance policies that fill the 'gaps' in Original Medicare coverage — paying for Part A and B deductibles, coinsurance, copayments, and in some plans, foreign travel emergencies.
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Frequently asked questions about Medicare Part D
What is Medicare Part D?+
Medicare Part D helps you pay for prescription drugs. It is offered through private insurance companies. These plans must follow rules set by Medicare. You choose a plan that fits your medicine needs. This part of Medicare helps make your medications more affordable.
Who can get Medicare Part D?+
Anyone who has Medicare Part A (hospital insurance) or Medicare Part B (medical insurance) can join a Medicare Part D plan. You must live in the service area of the plan you choose. It is a good idea to consider your health and medicine needs when picking a plan.
How do I sign up for Medicare Part D?+
You can sign up for Medicare Part D during certain times of the year. This is usually when you first become eligible for Medicare. You can also change your plan during the Open Enrollment Period. You join a Part D plan through a private insurance company that Medicare has approved.
How much does Medicare Part D cost?+
The cost of Medicare Part D depends on the plan you choose. Most plans have a monthly payment, called a premium. You might also have a deductible, copays, or coinsurance. Some people with higher incomes may pay an extra amount based on rules set by Medicare.