Medicare Part D is voluntary prescription drug insurance. Anyone with Medicare Part A or Part B may buy a Medicare Part D plan. If you have a Medicare Part A or B card, you are eligible for Part D.
Medicare Part D plans are sold by private insurance companies. You usually pay a monthly premium. There are programs to help low-income individuals with the cost of the Part D premiums. If you are eligible, you may not have a premium. For more information, go to our web page about Getting Help with Part D Costs.
Do I need Medicare Part D coverage?
If you have Medicaid or get prescription assistance from the state’s VPharm program, you must enroll in Medicare Part D.
If you have other prescription drug coverage, you may not need Medicare Part D. It depends on whether your current drug plan is “creditable coverage.” Creditable coverage means that your drug plan is just as good, or better, than a Part D plan.
If you have creditable coverage, then you do not need Part D coverage.
Is my current prescription insurance “creditable coverage?”
Your insurance company should have sent you a letter saying if you have creditable coverage. If you did not receive this letter, call your insurance company. The number for your insurance company is usually on the back of your ID card. Ask them if you have creditable coverage. If the answer is yes, ask them to send you a letter that says this. Keep this letter for your records.
What is the Medicare Part D penalty?
If you have Medicare Part A and/or Part B, but you do not have a Medicare Part D plan or other “creditable coverage” for prescription drugs, then you may have to pay a late enrollment penalty in the future. For more information about the penalty, go to Medicare’s website.