Medicare Part D

Prescription Drug Plans

Medicare Part D Prescription Drug insurance is optional coverage. To enroll, you must have Medicare Part A and/or Part B. There are several factors you should consider when getting a Part D plan.

Why should I get a Part D Prescription Drug Plan?

  • You use prescription drugs on a regular basis
  • You think you may need prescription drugs in the future
  • You do not have creditable prescription drug coverage (as good as Medicare’s)
  • You are worried about increasing prescription drug costs
  • You are having trouble paying for your prescription drugs

Not enrolling in a Medicare Part D plan when you are first eligible may result in a lifetime late enrollment penalty. However, you will not incur a penalty as long as you have had “creditable” drug coverage through an employer policy, VA Benefits, or TriCare for Life.

How do I choose a Part D Prescription Drug Plan?

You will want to choose a plan offered by Medicare-approved insurance companies. Find Medicare-approved plans in:

PART D Costs

Your cost for a Part D Plan is going to be different based on the following:

  • The drugs you use
  • The plan you choose (cost of premium, copayments, deductible)
  • Costs of your drugs in the coverage gap (aka “donut hole”)
  • Whether you go to a pharmacy in your plan’s network
  • Whether the drugs you use are on your plan’s formulary (or list of covered drugs)

In addition to your Part D plan premiums, there is a Part D Income Related Monthly Adjustment Amount (IRMAA) that is paid directly to Medicare.

Part D Income Related Monthly Adjustment Amount (IRMAA)
2021 income tax filed in 2022 2023 Part D Plan Premium + IRMAA
Individual Tax Joint Tax
$97,000 or less $194,000 or less Premium only
$97,001–$123,000 $194,001–$246,000 Premium + $12.20
$123,001–$153,000 $246,001–$306,000 Premium + 31.50
$153,001– $183,000 $306,001–$366,000 Premium + $50.70
$183,001–$500,000 $366,001–$750,000 Premium + $70.00
501,000 or more $751,000 or more Premium + $76.40

Review Your Part D Plan Every Year

Plans may change annually! Plans may change their formularies, and network pharmacies every year and sometimes during the year.

You can change your Part D plan every year during Open Enrollment between October 15 and December 7 to start new coverage beginning January 1.

Evaluate your Part D costs:

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