Who may be a Prescription Drug Plan (PDP Sponsor) for Medicare Drug coverage?
The PDP must service regional areas. Similar to “Medicare Advantage”, drug plans will submit bids to service eligible individuals in regions. The sponsor must provide information on benefits, cost sharing, service area, actuarial value, assumed administrative expense and expected reinsurance payments. The Secretary may aprove an unlimited number of full-risk plans, but may only approve as many limited risk plans necessary to avoid fallback. PDP’s must be licensed as insurers under state law.
Related Questions
- What is the difference between Medicare Advantage prescription drug (MA-PD) coverage and prescription drug plan (PDP) coverage?
- What is the difference between Medicare Advantage prescription drug (MAPD) coverage and prescription drug plan (PDP) coverage?
- Who may be a Prescription Drug Plan (PDP Sponsor) for Medicare Drug coverage?
