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:
- Your Medicare & You booklet
- The Medicare Plan Finder tool
- Or contact us for assistance
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: