Helps with the cost of prescription drugs.

Since Medicare Part A and B do not include prescription drugs, you can get drug coverage with a standalone Part D plan or as part of a Medicare Advantage plan (Part C). Some plans have pharmacy networks and mail order pharmacies that offer discounted prices.

Plans are offered by private insurance companies approved by Medicare. Your choices vary depending on where you live. Coverage and costs beyond the standards set by Medicare vary from plan to plan.

You must be enrolled in Part A or Part B to be eligible for a Part D plan.

Drugs Medicare Part D plans cover:

• Types of drugs most commonly prescribed according to federal standards
• Specific brand name and generic drugs on the plan formulary, or list of drugs
• Commercially available vaccines not covered by Part B

Key Point

Even if you don’t require prescription drugs currently, if you don’t sign up for a Prescription Drug plan when you are first eligible, you will incur a monthly premium penalty when you do enroll that will last for the rest of your life unless you have a Special Enrollment Period and have a credible plan.

Formulary

Each Part D plan or Medicare Advantage plan that includes drug coverage creates a list of specific drugs that it will cover. The list is called a “formulary.” Each plan has its own list of covered drugs, but every plan must cover a range of both generic and brand name drugs that are generally needed by people on Medicare. Plans also cover all commercially available vaccines, like the shingles shot, that aren’t covered by Part B. Part B covers things like flu and pneumonia shots.