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Medicare, Part D.
Mar 01, 2010
Understanding Medicare, Part D.
Part D, Prescription Drug Coverage
Medicare Part D began in 2006 and helps people pay for their prescription drug costs. Prescription drug coverage through Part D is offered through private insurance companies that contract with Medicare as either a stand-alone plan or as part of a Medicare Advantage plan. The average monthly premium for a Part D plan is $30.36.
You can sign up for Part D:
When turning 65 and eligible for Medicare, you have 3 months before the month of your birthday, the month of your birthday, and 3 months after the month of your birthday. When becoming eligible for Medicare because of a disability, you have 3 months before your 25th month of eligibility, the month of eligibility, and 3 months after eligibility.
During the Open Enrollment Period, November 15 through December 31 every year.
Select special enrollment periods throughout the year.
Medicare beneficiaries need to choose a Part D plan that fits them best depending on:
- Covered Drugs – are your prescriptions covered on the plan?
- Cost – monthly premiums, deductible, co-pays
- Convenience – pharmacies, mail order
- Company – customer service, reputation
You may have to pay a Part D late enrollment penalty if you do not join a Part D plan when you are first eligible, you do not have other creditable prescription drug coverage, or you later decide to join a Part D plan. The penalty is 1% per month of the national average Part D premium. You will have to pay a 1% penalty for every month you were eligible for Part D, but did not enroll in a plan. If you have prescription drug coverage through a private insurance such as an employer or union that is considered creditable, you can keep that coverage without paying a penalty if you decide to enroll in Part D later. If your creditable prescription drug coverage ends, you have 63 days from when it ends to sign up for a Part D plan and not have a penalty.
You can sign up for a plan on medicare.gov or through the phone at 1-800-MEDICARE (1-800-633-4227). Be sure to find out if your state has a program that can help pay for your prescription drug costs. To learn more about benefits go to www.benefitscheckup.org, it is a FREE, easy and quick process.
