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What Does Medicare Pay on the Part D Drug Plan?

Senior citizens who turn 65 years old and who have paid Medicare tax while working are eligible to receive Medicare benefits. Medicare benefits are separated into four categories, and only the first category is free. Medicare Part D is the fourth type of coverage offered through Medicare, and it is associated with the payment of a monthly fee.

  1. Medicare Part D

    • Medicare Part D pays for the costs of prescription drugs. Whether or not a particular prescription drug is included in Part D coverage depends upon the plan you choose. Some plans cover more prescription drugs than others do, which implies that some plans have higher prices associated with them than others. The amount of deductible you must pay also varies according to plans and prices. Some plans will pay for the whole cost of a particular medicine, while others will pay for only a percentage of it.

    Eligibility

    • You are eligible to enroll in Medicare Part D if you are enrolled in or entitled to receive Medicare Part A or Medicare Part B. Part A pays for the costs of hospitals, and Part B pays for the costs of doctor visits and medical treatments. Enrollment is voluntary in Part D since you must pay a monthly premium for its coverage. If you have low income and you cannot pay the monthly premiums for Part D, you might qualify to receive financial aid from the Social Security Administration.

    Gap

    • Even though Medicare Part D pays for the costs of prescription drugs, some plans have a gap in their coverage. Some Medicare D plans cover the costs of prescription drugs up to a certain amount. As of 2011, when you reach $2,840 in prescription drug expenses for the year, your plan stops paying for the costs of prescription drugs. If you reach $4,550 in out-of-pocket expenses, your plan starts helping you again. However, as of 2011, the government gives you a 50 percent discount for any expenses in prescription drugs you incur while you are in this gap.

    Application

    • To apply for Medicare Part D, choose the prescription drug plan that you think best suits your needs, keeping in mind that more coverage means higher monthly premiums. Medicare plans are more expensive for individuals with high income than for individuals with low income. You can only choose plans that provide service in your area. To enroll, call your plan, fill out an application or register on their website. You can also call Medicare.

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