Medicare Part D Prescription Coverage

Original Medicare does not cover prescription medications. Medications dispensed in a hospital or doctor’s office typically are covered by Medicare. Sometimes those with Medicare have prescriptions covered through an employer, and others have prescriptions covered through a Medicare Advantage plan (aka Plan C or MA plans.)

The rule of thumb when it comes to Medicare supplement insurance policies is this… if a medical service is covered by Medicare it is covered by the supplement plan, and if not covered by Medicare it is not covered by the Medicare supplement insurance plan.

Arizona Medicare supplement insurance plans do not include prescription coverage, a separate Part D policy must be purchased. In 2022 there are 27 Part D plans to choose from with prices ranging from $8-$140 a month, and the national average price is $33. For many the $8 plans are a great value. If you decide not to purchase Part D coverage the federal government will penalize you 1% of the national average price for each month you qualified for coverage but chose not to enroll in a plan. The penalty kicks in when you do enroll in a plan. If for no other reason than to avoid the penalty, enrolling in the cheapest plan available is best.

The annual Medicare open enrollment period is October 15 through December 7. During this time, you may change Part D insurance coverage. You may find yourself changing Part D insurance coverage every year to get the best price, and this is easy to do on the Medicare website. The downside to Part D plans is that the premiums can change dramatically from one year to the next. They are not like a typical Arizona Medicare supplement insurance policy premium that stays within reason each year. Part D plan premiums can double or triple from year to year, hence the need to shop for better coverage each year. It’s also a good idea to shop your Part D plan each year if you have added medications.