Medicare Part D — RX Coverage

Why Part D Matters, Even If You Don't Need It Yet

Medicare offers prescription drug coverage to everyone with Medicare. Even if you don't take a lot of prescriptions now, it's worth considering a Medicare drug plan when you're first eligible. If you decide not to join and you don't have other creditable prescription drug coverage — or you don't qualify for Extra Help — you'll likely pay a late enrollment penalty down the road. To get Medicare prescription drug coverage, you must join a plan run by an insurance company or other private company approved by Medicare, and each plan can vary in cost and the specific drugs it covers.

Two Ways to Get Part D Coverage

• Medicare Prescription Drug Plans (PDPs) — these add drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private Fee-for-Service (PFFS) Plans, and Medicare Medical Savings Account (MSA) Plans.
• Medicare Advantage Plans (like an HMO or PPO) — you get your Part A, Part B, and prescription drug coverage (Part D) all through the same plan, sometimes called an "MA-PD." You must have Part A and Part B to join a Medicare Advantage Plan.

In either case, you must live within the service area of the Medicare drug plan you want to join.

If You Have Employer or Union Coverage

Call your benefits administrator before making any changes or signing up for other coverage. If you drop your employer or union drug coverage, you may not be able to get it back — and you may not be able to drop just the drug coverage without also dropping your employer or union health (doctor and hospital) coverage. If you drop coverage for yourself, you may also have to drop it for your spouse and dependents.

Source: Medicare & You handbook