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)
2019 income tax filed in 2020 2022 Part D Plan Premium + IRMAA
Individual Tax Joint Tax
$88,000 or less $176,000 or less Premium only
$88,001–$111,000 $176,001–$222,000 Premium + $12.30
$111,001–$138,000 $222,001–$276,000 Premium + 31.80
$138,001– $165,000 $276,001–$330,000 Premium + $51.20
$165,001–$499,999 $330,001–$749,999 Premium + $70.70
500,000 or more $750,000 or more Premium + $77.10

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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