what is a prescription drug plan?

A Medicare prescription drug plan, also known as Medicare Part D, is a voluntary program that provides prescription drug coverage to people with Medicare. Part D is offered by private insurance companies approved by Medicare and helps pay for the cost of prescription drugs.

Medicare prescription drug plans work alongside Original Medicare, as well as some Medicare Supplemental plans, to provide coverage for prescription medications. Each plan has a formulary, which is a list of prescription drugs covered by the plan, and may have different cost-sharing requirements such as deductibles, copayments, and coinsurance.

If you are eligible for Medicare and do not currently have prescription drug coverage, it's important to consider enrolling in a Part D plan. You can enroll during your initial enrollment period or during the annual open enrollment period.

If you don't sign up for Medicare Part D when you're first eligible, you may have to pay a late enrollment penalty if you decide to enroll later. The penalty is calculated based on the number of months you went without creditable prescription drug coverage, and it is added to your monthly premium for as long as you have Part D coverage.

It's important to note that there are some exceptions to the late enrollment penalty, such as if you have other creditable prescription drug coverage, such as through an employer or union plan. However, if you don't have creditable coverage and don't enroll in Part D when you're first eligible, you may face financial penalties and gaps in prescription drug coverage.