Medicare Part D, also called the Medicare prescription drug benefit, is an optional United States federal-government program to help Medicare beneficiaries pay for self-administered prescription drugs. Part D was enacted as part of the Medicare Modernization Act of 2003 and went into effect on January 1, 2006.

Medicare drug coverage helps pay for prescription drugs you need. Even if you don’t take prescription drugs now, you should consider getting Medicare drug coverage. Medicare drug coverage is optional and is offered to everyone with Medicare. If you decide not to get it when you’re first eligible, and you don’t have other creditable prescription drug coverage (like drug coverage from an employer or union) or get Extra Help, you’ll likely pay a late enrollment penalty if you join a plan later. Generally, you’ll pay this penalty for as long as you have Medicare drug coverage. To get Medicare drug coverage, you must join a Medicare-approved plan that offers drug coverage or purchase a separate independent prescription plan. Each plan can vary in cost and specific drugs covered.

There are a few things to consider when choosing a prescription drug plan such as: if you take specific drugs, if you want extra protection from high prescription drug costs, if you take a lot of generic prescriptions, if you’re looking for your drug expense to be balanced throughout the year; and working with a seasoned agent is the best way to make sure that you are enrolling in a prescription plan that best suits your needs.

All plans must cover a wide range of prescription drugs that people with Medicare take, including most drugs in certain protected classes, like drugs to treat cancer or HIV/AIDS. A plan’s list of covered drugs is called a formulary and each plan has its own formulary. It is important to review your prescriptions you take with your agent so he can assist you in choosing the right plan for you.

Most drug plans charge a monthly fee that varies by plan. You pay this in addition to the Part B premium. If you're in a Medicare Advantage Plan or Medicare Cost Plan with drug coverage, the monthly premium you pay for this plan may include an amount for drug coverage. Many plans place drugs into different levels, called tiers on their formularies. Drugs in each tier have a different cost. For example, a drug in a lower tier will generally cost you less, or even cost nothing out of pocket, than a drug in a higher tier.important to review your prescriptions you take with your agent so he can assist you in choosing the right plan for you.