Part D

Part D costs:

What you pay:

Premium

Monthly premiums vary based on which plan you join. The amount can change each year. You may also have to pay an extra amount each month based on your income.

Who pays an extra amount because of income? 

You might pay a penalty if you:

• Don’t join a Medicare drug plan when you first get Medicare, and
• Go 63 days or more without creditable drug coverage (coverage that’s similar in value to Part D).

How much is the Part D penalty?

• You’ll pay an extra 1% for each month (that’s 12% a year) you could have signed up for Part D, but didn’t.
• The penalty is added to your monthly premium.
• It’s not a one-time late fee — you’ll pay the penalty each month for as long as you have Part D coverage (even if you change plans).
• If you have creditable drug coverage or if you qualify for Extra Help, you won’t have to pay a penalty.

Example of the Part D penalty. 

When you get prescription drugs

Most plans charge a deductible, an amount you pay before the plan starts to pay, for prescriptions you fill. The deductible amount varies based on which plan you join.

Your actual costs vary depending on the medicines you take, if they are on your plan’s list of covered drugs, and which pharmacy you use.

Get help with drug costs
If you have limited income and resources, you may be able to get Extra Help to pay your plan premiums and other drug costs (like deductibles, coinsurance, and copays). If you qualify, you won’t have to pay the Part D late enrollment penalty. Learn more about help with costs.

www.medicare.gov