1. STAND-ALONE PRESCRIPTION DRUG PLANS (PDPS): These plans can be added to Original Medicare (Part A and Part B) or to a Medicare Supplement (Medigap) plan to provide prescription drug coverage. 2. INCLUDED IN MEDICARE ADVANTAGE: Many Medicare Advantage (Part C) plans include prescription drug coverage, combining all your healthcare needs into one plan. 3. PRIVATE INSURANCE COMPANIES: Medicare Part D plans are offered by private insurance companies that contract with Medicare. Each plan has its own list of covered drugs, known as a formulary. 4. FORMULARY AND TIER SYSTEM: Each plan categorizes medications into tiers, with different cost-sharing requirements. Typically, lower-tier drugs have lower copayments, while higher- tier drugs have higher copayments. 5. COVERAGE GAP (DONUT HOLE): There’s a coverage gap in most Part D plans. In 2023, you’ll enter the coverage gap once your total drug costs (both what you pay and what your plan pays) reach $4,430. During this phase, you pay a higher percentage of the drug costs until you reach the catastrophic coverage threshold. 6. CATASTROPHIC COVERAGE: Once your out-of-pocket drug costs reach a certain limit (in 2023, it’s $7,050), you’ll move into the catastrophic coverage phase. Here, you’ll pay a significantly reduced amount for your drugs. MEDICARE PART D KEY FEATURES
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