Part D of Medicare is prescription drug coverage. This information was covered in Jeff Tomlin’s free presentation at Lane Community College: Medicare 101 – The A, B, C & D’s. Please enjoy a brief summary and video of this portion of the course.
- Part A is Hospital,
- Part B is Outpatient,
- Part C is Medicare Advantage,
- and Part D is Drug Coverage.
Parts C and D are also plans.
Part C, the Medicare Advantage system, was created by the federal government, and it is private insurance. Part D, prescription drug coverage, was created in 2006, and this plan is also only available under private insurance.
If you are someone that is about to turn 65, you may be wondering: “I’m in good health – why would I buy prescription drug coverage?” Even if you don’t currently take medications, it’s possible that you will need to in the future. In this case, we would recommend a $12.60 per month prescription plan, which is the least expensive prescription plan currently available.
If a different and/or better prescription coverage plan is needed for the following year, there is an opportunity to switch plans between October 15th – December 7th.
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What happens if I enroll in Part D after my 65th birthday?
It’s important to note that there is a late enrollment penalty. Each year you wait, approximately $4.28 is added to your monthly premium. To clarify, if you turn 65 and buy a Medicare Supplement, and never buy a Part D drug plan, you will never pay a penalty. The penalty applies when you have waited a while (after turning 65) and then purchase a Part D plan. There wouldn’t be a penalty if you have other creditable drug coverage (ex. employer, VA, or TriCare).
If you plan to stay on an employer plan after age 65, verify that the drug coverage is creditable, meaning it’s just as good or better than Medicare Part D. Insurance companies for every group health plan are required to mail employers information on whether or not the drug coverage is creditable, so you should be able to verify this rather easily.
Note: Part D is designed by Medicare, but you can’t buy a Part D plan from the government. It always comes from private insurance.
How do I add Part D (Prescription Drug Coverage) to my plan?
The options are as follows:
- Medicare + Stand-Alone Part D Prescription Plan
- Medicare + Supplement Plan + Stand-Alone Part D Prescription Plan
- A Medicare Advantage Plan with Part D Prescription Plan Included
There are Medicare Advantage Plans that don’t have Part D included, but you’re not able to pick a Medicare Advantage plan and a different drug plan, so it’s important to speak with a professional that can guide you through this process.
It’s completely free for you to speak with any of our agents. Utilize our knowledge and let us help you figure out the Medicare path that is right for you.
Interested in attending Jeff Tomlin’s next FREE presentation? Register now for Tuesday, July 17th, 2018. This session will be offered at two different times: 3:00pm and 6:00pm at the downtown Eugene LCC campus .
Click here to register for the 3:00pm session.
Click here to register for the 6:00pm session.