Medicare Prescription Options

Medicare is government health insurance administered by the Centers for Medicare and Medicaid Services, which provides benefits to people aged 65 and older. It also covers people under age 65 who have certain disabilities as well as people with permanent kidney failure being treated with dialysis or a kidney transplant. Medicare coverage is divided into four parts that include hospital and medical insurance as well as prescription coverage.

Medicare Prescription Coverage

• Medicare prescription insurance, or Part D, covers generic and brand name prescription drugs. Anyone who qualifies for Medicare is eligible for Medicare prescription options, regardless of current prescription expenses, health status, income or resources. If you are approaching your 65th birthday, you can enroll for Part D three months prior to your birth month or three months after it. If you receive Medicare coverage due to a disability, you can enroll for prescription coverage three months prior to your 25th disability payment month or three months after it. Once you choose one of the Medicare prescription options, you can enroll by phone, the Medicare website or by mailing in a paper application. Your monthly payment will depend on the Medicare prescription option you choose and the plan associated with it. If you have limited income or resources you may be eligible to receive extra help from Medicare that will pay for most of the costs of your prescription drugs.

Medicare Advantage Plans

• If you want a plan that provides all of the health benefits in one package, including prescription coverage, you can choose one of the Medicare plans that offer extra benefits such as dental and vision. Medicare Advantage Plans, or Part C, are health insurance plans provided by private insurance carriers approved by Medicare that cover Parts A, B and D--hospital, medical and prescription insurance. The different types of Medicare Advantage Plans include preferred provider organizations, health maintenance organizations, medical savings accounts and private fee-for-service plans, most of which contain Medicare prescription coverage.

Prescription Drug Plans

• Since Medicare prescription options are voluntary, you can choose a stand-alone plan that only offers prescription drug coverage. If you receive Medicare benefits from one of the fee-for-service plans, you may want to add a prescription drug plan to your benefit package. If you currently have prescription coverage under Medicaid and are now eligible for Medicare, you will have to choose a Medicare prescription option to continue the coverage. People who have prescription coverage provided through an employer that provides better benefits than Medicare can continue that coverage instead of having to sign up for Medicare prescription options. There is a penalty for enrolling in Medicare prescription coverage if you enroll after your eligibility period ends.