Okay! We’ve discussed Medicare Parts A, B, and C, so now we’re going to go over the final letter of the Medicare Alphabet: Part D. Luckily, this one isn’t too hard to remember because Part D is Prescription Drugs (D = Drugs). Let’s talk about what that means.
Prescription Drugs seems pretty self explanatory by name, and it can be exactly that; however, there are more nuanced parts of the prescription side of Medicare that need to be visited.
To start, Prescription Drug Plans (PDP) can only be signed up for during certain times.
When you initially turn 65
When you turn 65, during your Initial Open Enrollment Period, you have time to elect a Prescription Drug plan (or a Medicare Advantage plan that includes prescription coverage).
When you leave a group or spouse plan
When you leave an employer plan or a spouse’s plan that offers prescription drug coverage, you will have a short window of time in which you qualify for a Special Enrollment Period–a time that allows you to sign up for additional Medicare coverages.
During the Annual Election Period (October 15-December 7)
During AEP, you have the opportunity to sign up for a PDP if you do not already have one. This is also the only time of year, generally, that you’re able to switch from one PDP to another.
Here’s another thing: if you don’t sign up, you might be penalized
Sounds crazy, right? Well it’s true! If you don’t sign up for Prescription Drug coverage when you’re initially eligible AND you don’t have credible employer coverage (more on that in another blog post), then you could face a penalty of 1% of the national PDP premium average for every single month you went uninsured. So, if you miss a few months, that may not be a huge issue, but if you miss a few YEARS, then that can add up quick?
Okay, but what if I’m not taking any prescriptions?
Seems silly to have to pay for a plan if you’re not taking any prescriptions, doesn’t it? As I’m writing this in 2025, there are currently options in Oregon for 0 premium prescription plans! This is fantastic because it costs you nothing and helps you avoid any lifelong penalties down the road. Also, it provides coverage should something come up in the future and you need prescription coverage outside of the AEP!
With prescription plans, you should look to ensure your drugs are covered. You should also look to ensure that your preferred pharmacy is in network, and you should check star ratings when comparing plans in your area. All of this can be done on Medicare.gov, and it helps to call a licensed agent (like us!) to help go over all of your options and ensure you don’t miss anything in the tedious process!
This information is intended to be a guide only–not an exhaustive list of things to look for in a plan or processes to take. Please reach out directly to a licensed agent, call Medicare, or go online to Medicare.gov for further information pertaining to your specific situation!