Medicare is available to patients ages 65 and older, as well as those under 65 with certain health conditions. Medicare Part D drug coverage is optional and offered to everyone with Medicare. Therefore, you must have Medicare Part A and/or Part B first to join a separate Medicare Part D drug plan. Please note that you will pay an additional cost on top of what you pay for Medicare Parts A and B if you sign up for Medicare Part D. Learn more about signing up for Medicare.
When can I sign up for Medicare Part D?
While it’s optional to elect a Medicare Part D plan for prescription drug coverage, it’s important to sign up for Medicare Part D when you are first able to, even if you don’t take prescription medicine. If you do not sign up for Medicare at this time, you may pay a late fee. This late fee is permanent and can increase over time, so remember to sign up for Medicare Part D as soon as you can.
You can sign up for Medicare between 3 months before your 65th birthday and during the 3 months that follow your 65th birthday.
After you sign up for Medicare, you can change your plan each year during the Open Enrollment Period. The Open Enrollment Period is between October 15 and December 7 of each year.
If you signed up for a Medicare Advantage plan, you can change your plan during the Medicare Advantage Open Enrollment Period, which is between January 1 and March 31 of each year.
Visit www.ssa.gov/benefits/medicare or contact the Social Security Administration to sign up.
What do I need to know about my Medicare Part D plan’s formulary?
You can check your plan to find out which drugs are covered before you choose your Part D coverage. Your plan’s formulary may change throughout the year so be sure to keep up to date to make sure your medicine is still covered.
Formularies may include levels called “tiers,” where medicine is categorized based on the costs you will pay. Formularies may also include coverage rules (eg, prior authorization, step therapy) that can require you and your doctor to go through extra steps before your medicine is covered by your insurance.
If your medication is not covered, subject to a coverage rule, or is covered on a higher, more expensive tier, you and your doctor can work together to request an exception from Medicare and make your medication more affordable.
Can I continue to use my local pharmacy to pick up my prescriptions?
Yes, but your drug costs can vary based on which pharmacy you use. Out-of-pocket costs may be less at a pharmacy that is preferred by your drug plan or when prescriptions are filled by a mail-order pharmacy.
How is my Medicare Part D plan structured?
Medicare Part D has different phases. Depending on the phase of coverage you are in, you may pay a different out-of-pocket cost when you pick up your medicine from your pharmacy.
- You may or may not have a deductible, which will not be more than $545
- In the next phase, you may have out-of-pocket costs based on the plan you select
- If you and your health plan combine to spend $5030 on your medicine, you may be in the coverage gap. In this phase, you may pay 25% of the cost of your medicine, the manufacturer of your medicine pays 70%, and your health plan pays 5%
- After you, your health plan, and the manufacturer of your medicine have paid $8000, Medicare and your health plan will pay the full cost of your covered medicines
Most Part D plans do not follow the structure listed above. Medicare requires that health plans offer equal or better coverage than what is included above.
What is the Medicare Prescription Payment Plan?
Beginning in 2025, the Medicare Prescription Payment Plan allows members to sign up to spread the cost of their prescription drugs over the full year instead of paying for it all at once at the beginning of the year. Learn more about the Medicare Prescription Payment Plan.
How do I sign up for the Medicare Prescription Payment Plan?
Your Medicare plan will not automatically enroll you in the Medicare Prescription Payment Plan—you need to opt-in to receive this benefit. You can do this on your Medicare plan’s website or by calling the number on the back of your card and asking to be signed up. You can opt-in at any time after October 15, 2024.