Medicare Part D (Prescription Drug Program)

Part D is a voluntary prescription drug insurance program through Medicare called "Medicare Prescription Drug Coverage" that started January 1, 2006. Medicare created a standard benefit design and asked private insurance companies to market plans that are equal to or better than the standard Medicare design. Click here to see the 2012 adjusted standard benefit design.

This drug coverage is available to everyone who has Medicare, regardless of income or health status. In California, there are dozens of Part D plans available from which to choose from. Monthly premiums range from under $20 to over $100. If you have a limited income, you may get "extra help" to cover prescription drugs for little or no cost. To find out if you are eligible for extra help, call Social Security at 1-800-772-1213. Higher income seniors may be charged more depending upon the extent modified adjusted grow income exceeds $85,000 ($170,000 for married couples).

In addition to a premium you will also have a share of costs determined by the plan you select. Companies have some flexibility with the drugs they choose to cover under their plan (called a drug formulary) and the pharmacies they contract with, but there are some minimum standards that are strictly enforced. Plans run for a calendar year at which point they can be renewed for another calendar year, or replaced with another plan during an annual open enrolment period (in 2012 the AEP is Oct. 15- Dec. 7th). Though this is a voluntary program, you may be penalized if you do not enroll when you are first eligible and do not have other equivalent coverage.

To review plans on your own, visit Medicare's web site at www.medicare.gov. Their Part D Drug Plan Finder allows you to enter your personal prescription drug information and other preferences, evaluate plans and enroll online.

Note: it is very important to discuss your particular circumstances with an insurance professional. By enrolling in a Prescription Drug Plan, you may "void" your current coverage. If you are unsure about your eligibility contact Medicare or Social Security.

OnlyHealthInsurance provides a free analysis and recommendation to our new Medicare Supplement clients. Not a client of ours? We can provide this service for a small fee.

Give us a call today at 1-800-924-1411 and we'll send you our free Part D facts sheet!