Medicare’s Prescription Drug Coverage:
What You Need to Know
Medicare offers prescription drug plans to help you pay for the prescriptions you need. For most people, joining when you are first eligible means you will pay a lower monthly premium. However, waiting to join may result in paying a penalty.

What you need to know:
  • To get Medicare prescription drug coverage, you must choose and join a Medicare drug plan.
  • Annual enrollment dates are November 15 through December 31. Your coverage is effective on January 1 of the following year.
  • If you join, your costs will vary depending on which plan you choose. Basically, you may pay a monthly premium and a yearly deductible – up to the first $275. You will also pay a share of your prescription drugs costs. Medicare’s share in your prescription drug costs covers up to $2,510 in total costs. Once your total out-of-pocket cost for drugs reaches $4,050, you pay 5% of the costs and Medicare pays 95% of the costs for the rest of the year.
  • Many people with limited income and resources will get extra help paying for their prescription drug coverage. People with the lowest incomes and resources will get the most help.
Already have prescription drug coverage?

If you already have prescription drug coverage through your Medicare health plan or other insurance, check with your current plan to see if this coverage is changing. Unless you have other drug coverage that is comparable to standard Medicare prescription drug coverage, it’s important to join a Medicare drug plan when you are first eligible.

For more information visit http://www.medicare.gov, call 1-800-633-4227. TTY users may call 1-800-325-0778.