Part D plans matched to the drugs you actually take

Medicare Part D prescription drug coverage

Medicare offers prescription drug coverage to everyone with Medicare. If you decide not to join a Medicare Prescription Drug Plan when you're first eligible — and you don't have other creditable drug coverage or qualify for Extra Help — you'll likely pay a late-enrollment penalty for as long as you have Part D. To get coverage, you join a plan run by an insurance company approved by Medicare. Each plan varies in cost and in the drugs it covers.

Two ways to get drug coverage

1. A stand-alone Medicare Prescription Drug Plan (Part D). These plans (sometimes called "PDPs") add drug coverage to Original Medicare, some Medicare Cost Plans, some Private Fee-for-Service Plans, and Medicare Medical Savings Account Plans.

2. A Medicare Advantage Plan (Part C) that includes drug coverage. With these plans (often called "MA-PDs"), you get your Part A, Part B, and Part D coverage all in one. You must have Part A and Part B to join a Medicare Advantage Plan.

What drug plans cover

Each Part D plan has its own list of covered drugs, called a formulary. Many plans place drugs into different "tiers," and drugs on a lower tier generally cost less than those on a higher tier. If your drug is on a higher tier and your prescriber believes you need it instead of a similar lower-tier drug, you or your prescriber can ask the plan for an exception to get a lower copayment.