Prescription Drug Plans - The Insurance Pros
Prescription Drug Plans or Part D Plans (PDP) Basics
As we get older, it can seem like we get prescribed a new medication every time we visit the Doctor's office. For those on a fixed income, prescription costs can become very costly between high premiums, copays, and coinsurance. Give the Pros a call today to see if you are eligible for savings on your prescription drugs!
About Prescription Drug Plans (PDP)
What are PDP's?
Prescription Drug Plans (PDPs) are standalone plans offered by private insurance companies that help cover the cost of prescription medications.
- These plans are designed to work alongside Original Medicare (Part A and Part B) to provide coverage for prescription drugs, which Original Medicare does not cover.
- If you have Original Medicare and need prescription drug coverage, you can enroll in a separate Part D plan, which is where PDPs come in.
- Some plans (such as most Medicare Advantage Plans) include Prescription Drug coverage in their plans at little to no additional premium.
Do I need a PDP?
You will need a PDP if:
- You have Original Medicare (Part A and Part B) and need prescription drug coverage, since Original Medicare doesn’t cover prescription drugs.
- You have a Medicare Supplement Plan in addition to Original Medicare and don't have creditable drug coverage through another entity such as the VA.
- You’re not covered by a retiree drug plan or other credible prescription drug coverage from a former employer or union.
When do I enroll in a PDP?
- Initial Enrollment Period (IEP): When you first become eligible for Medicare (around age 65), you can enroll in a PDP.
- Annual Enrollment Period (AEP): From October 15 to December 7, you can enroll in a new plan or switch plans.
- Special Enrollment Periods (SEPs): If you lose creditable prescription drug coverage (e.g., from an employer or union), you may qualify for an SEP to enroll in a PDP outside of the AEP.
Late Enrollment Penalty
If you don’t enroll in a Prescription Drug Plan when you're first eligible and don’t have other creditable prescription drug coverage, you may face a late enrollment penalty. This penalty increases your Part D premium for as long as you have the coverage.