Understanding Medicare Drug (Part D) Plans:
Medicare offers prescription drug coverage (Part D) to everyone with Medicare. To get Medicare Part D drug coverage, you must join a plan run by an insurance company or other private company approved by Medicare. Each plan can vary in cost and drugs covered.
Medicare Part D Eligibility
Medicare eligibility for Medicare Part D is only for individuals who do not already have "creditable" prescription drug coverage. Creditable prescription drug coverage (for example, from an employer or union) is coverage that is expected to pay, on average, at least as much as Medicare's standard prescription drug coverage.
People who have this kind of coverage when they become eligible for Medicare can generally keep that coverage without paying a penalty, if they decide to enroll in Medicare prescription drug coverage later.
However, if you do not have creditable prescription drug coverage and you do not enroll in a Part D plan or a Medicare Advantage plan with prescription drug coverage when you are first eligible, you may be required to pay a "late enrollment" penalty if you later enroll in a Part D plan.
Here are some scenarios that may be considered as creditable prescription drug coverage:
•Covered by pension program. Some Americans receive prescription drug coverage as part of their pension package. They would normally not be eligible for Medicare Part D.
•Covered by employer. If a Medicare enrollee is currently employed and his or her employer provides prescription drug coverage, they would normally not be eligible for Medicare Part D.
•Covered by union. Many unions offer prescription drug coverage for their retired members. They would normally not be eligible for Medicare Part D.
•Medicare Advantage. Many Medicare Part C (Medicare Advantage) programs already include prescription drug benefits. They would normally not be eligible for Medicare Part D.
Medicare Part D Eligibility
Medicare eligibility for Medicare Part D is only for individuals who do not already have "creditable" prescription drug coverage. Creditable prescription drug coverage (for example, from an employer or union) is coverage that is expected to pay, on average, at least as much as Medicare's standard prescription drug coverage.
People who have this kind of coverage when they become eligible for Medicare can generally keep that coverage without paying a penalty, if they decide to enroll in Medicare prescription drug coverage later.
However, if you do not have creditable prescription drug coverage and you do not enroll in a Part D plan or a Medicare Advantage plan with prescription drug coverage when you are first eligible, you may be required to pay a "late enrollment" penalty if you later enroll in a Part D plan.
Here are some scenarios that may be considered as creditable prescription drug coverage:
•Covered by pension program. Some Americans receive prescription drug coverage as part of their pension package. They would normally not be eligible for Medicare Part D.
•Covered by employer. If a Medicare enrollee is currently employed and his or her employer provides prescription drug coverage, they would normally not be eligible for Medicare Part D.
•Covered by union. Many unions offer prescription drug coverage for their retired members. They would normally not be eligible for Medicare Part D.
•Medicare Advantage. Many Medicare Part C (Medicare Advantage) programs already include prescription drug benefits. They would normally not be eligible for Medicare Part D.