If you're covered by Medicare, here's some welcome news—Medicare drug coverage can help you handle the rising cost of prescriptions. If you're covered by Original Medicare, some Medicare Cost Plans, Medicare Private Fee-For-Service Plans or Medicare Medical Savings Account Plans, you can sign up for a Medicare Prescription Drug Plan (Part D) offered in your area by a private company or insurer that has been approved by Medicare.
Although prescription drug plans vary, all provide a standard amount of coverage set by Medicare. However, some plans cover more drugs or offer a wider selection of pharmacies (for a higher premium) than others. Most Medicare Advantage (Part C) plans also offer prescription drug coverage.
How much will it cost?
What you'll pay for Medicare drug coverage depends on which plan you choose. Figures noted are for 2024. Please visit medicare.gov for complete details.
What if you can't afford coverage?
Medicare’s Extra Help program is available to people who have limited income and resources. Medicare will pay all or most of the drug plan costs of people who qualify for help. If you haven't already received a letter telling you that you have automatically qualified for help, you can apply online or at your local Medicaid office.
When can you join?
Individuals new to Medicare have seven months to enroll in a drug plan (three months before, the month of, and three months after becoming eligible for Medicare). Current Medicare beneficiaries can generally enroll in a drug plan or change drug plans during the annual election period (also called the open enrollment period) that occurs between October 15 and December 7 of each year, and their Medicare prescription drug coverage will become effective on January 1 of the following year. If you qualify for Medicare’s Extra Help, you can enroll in a drug plan at any time during the year. If you have a Medicare Advantage plan, you can switch to another plan with or without drug coverage or switch to Original Medicare (and join a separate Medicare drug plan) during Medicare Advantage's open enrollment period that runs from January 1 through March 31 each year. Certain other events may qualify you for a Special Enrollment Period outside of the annual election period when you can enroll in a plan or switch plans.
If you already have Medicare drug coverage, remember to review your plan each fall to make sure it still meets your needs. Before the start of the annual election period, you should receive a notice from your current plan letting you know of any important plan modifications or additional plan options. Unless you decide to make a change, you'll automatically be re-enrolled in the same drug plan for the upcoming year.
Do you have to join?
No. The Medicare prescription drug benefit is voluntary. However, when deciding whether or not to enroll, keep in mind that if you don't join when you're first eligible, but decide to join in a future year, you'll pay a premium penalty that will permanently increase the cost of your coverage.
There's an exception to this premium penalty, though, if the reason you didn't join sooner was because you already had creditable prescription drug coverage, defined as coverage through another source (such as employer health plan) that was at least as good as the coverage available through Medicare. If you have coverage through another source, talk to your benefits administrator, insurer or plan before making changes to your coverage. If you drop your coverage, you may not be able to get it back.
What if you have questions?
If you have questions about the Medicare prescription drug benefit, you can get help by calling 1.800.MEDICARE (1.800.633.4227) or by visiting the Medicare website at medicare.gov.
As you look toward the future, Busey Wealth Management’s team of experts is here to help. To learn more about our comprehensive services, visit busey.com/wealth-management.
1U.S. Centers for Medicare and Medicaid Services
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