Understanding Part D: Prescription Drug Coverage Basics

Medicare Part D helps lower the cost of prescription drugs. Plans are offered by private insurers and each maintains a formulary — a list of covered drugs grouped into tiers.

Lower tiers (often generics) usually have lower copays; higher tiers (specialty or brand-name drugs) cost more. If your medication isn't on a plan's formulary, you may pay the full cost or need a different plan.

When choosing a Part D plan, it's important to confirm that every prescription you take is covered at a cost you can estimate. Plan details can change each year, so reviewing your coverage during Open Enrollment is wise.

Enrolling late can lead to a permanent late-enrollment penalty, so timing matters even if you don't take many medications now.