What is the Medicare Drug Benefit?
The Medicare prescription drug benefit – also known as Medicare Part D – is voluntary insurance that Medicare beneficiaries can purchase to help cover the costs of their prescription drugs. Only private insurance companies can offer Part D plans. It is up to you to decide which plan best fits your needs. Like other insurance plans, you will be responsible for payments such as a deductible, monthly premiums, and co-payments. Unlike other insurance plans, it is likely you will also be exposed to a large coverage gap or “donut hole,” where you continue paying monthly premiums but receive no help with the cost of your prescription drugs.
The Medicare prescription drug benefit — also known as Medicare Part D — is voluntary insurance that Medicare beneficiaries can purchase to help cover the costs of their prescription drugs. Only private insurance companies can offer Part D plans. It is up to you to decide which plan best fits your needs. Like other insurance plans, you will be responsible for payments such as a deductible, monthly premiums, and copayments. Unlike other insurance plans, it is likely you will also be exposed to a large coverage gap or “donut hole,” where you continue paying monthly premiums but are also required to cover substantial costs for your prescriptions. You can join a Medicare Part D private plan and continue to receive your Original Medicare benefits for hospitalization (Part A) and doctors’ visits (Part B) directly through the federal government. Or you can join a private insurance Medicare Advantage plan, such as a Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO)
