Is Medicare Part D Right For Me?

Medicare makes sure to give people options. While this freedom allows people to choose what’s best for them, it can get very confusing very quickly. One of the major sources of confusion is whether or not you will need Medicare Part D. Fortunately, we here at Wise Up Financial can help you choose the best option for you. Read on to learn more about whether or not you will need Medicare Part D.

What is Medicare Part D?

The structure of Medicare can be confusing. Medicare has four parts: Parts A, B, C, and D. Part A covers inpatient health services, Part B covers outpatient services, Part C is another name for Medicare advantage, and Part D covers prescription drugs. Parts A and B are offered by the federal government. These are the Parts of Medicare traditionally thought of as Original Medicare. When you enroll in Medicare, you automatically enroll in Part A. Part B is technically optional, but most people enroll in Part B. In contrast, Parts C and D are offered by private insurance companies. These parts are completely optional.

What Does Part D Cover?

Each Part D plan is different. The exact medications they cover depend on their formulary, a list of which drugs they cover. The formulary includes at least 2 drugs in each commonly prescribed drug category. These include both brand-name and generic drugs. Medicare will cover all medications to a different extent. More expensive medications may require you to pay more out-of-pocket costs.

Who Should Purchase Part D

Some people need Part D more than others. Prescription medications can be very expensive. Anyone who needs medications for their health should purchase a Part D plan. 

Another thing to keep in mind about Part D is that you will have to pay a late fee if you do not enroll in Part D when you are first eligible. If you are eligible for Medicare but choose not to enroll in Part D during the Initial Enrollment Period and do not have prescription drug coverage, you will have to pay the late fee if you decide to enroll in Part D at a later date. While the late fee is generally affordable, it is then added to your Part D premium monthly for the rest of the time you have Part D. This can quickly add up.

Who Does Not Need Part D

Not everyone needs Medicare Part D. Some people may already have prescription drug coverage. If you have prescription drug coverage and it is more comprehensive than Medicare Part D, you should stick with your original plan and forgo Medicare Part D. People who have the following forms of coverage do not need Part D: 

  • Federal Employee Health Benefits Program
  • Veterans’ Benefits
  • TRICARE
  • Civilian Health and Medical Program of the Department of Veterans Affairs
  • Indian Health Services

These plans cover more than regular Medicare Part D, so it would be in your best interest to keep the above coverage. 

At Wise Up Financial, we can help you understand your wisest financial choices. Call us for more info today!