Medicare Part D

While Medicare Part D is technically optional, it can be beneficial to have, especially for those who regularly take prescriptions. Many medications can be expensive, so people often opt for Medicare Part D to help cover the costs.

Enrolling in Medicare Part D

If you do not enroll in Part D before your Initial Enrollment Period is over or you don’t have drug coverage for more than 63 days, you will have to pay a penalty fine that depends on the number of months you went without coverage.

To qualify for Part D, you must be enrolled in Medicare Part A and/or Part B. If you are eligible for Medicare Advantage, you may be able to find a Medicare Advantage that offers prescription drug coverage as an added benefit, but this will depend on the plan.

We are committed to helping you realize your health and financial goals by making you aware of all your options so that you can make the best choice for yourself and your family.

Medicare Part D Costs

Deductible + Premium

Medicare Part D will carry an annual deductible and a monthly premium. The deductible will vary from plan to plan. Some plans have no deductible, while others may have a deductible as high as $505. No plan may have a deductible higher than $505 in 2023.

The monthly premium depends on your income. Part D premiums vary from plan to plan, but people with a higher income will pay even more depending on their income. The money you pay in addition to your premium is called the income-related monthly adjustment amount. See the guidelines below to see how much extra you will be expected to pay.

If you make less than $97,000 individually or less than $194,000 if you file jointly, you will not pay any extra for Part D.

If you make between $97,000 and $123,000 individually (or between $194,000 and $246,000 jointly), you will pay an extra $12.20 per month for Part D.

If you make between $123,000 and $153,000 individually (or between $246,000 and $306,000 jointly), you will pay an extra $31.50 per month for Part D.

If you make between $153,000 and $183,000 individually (or between $306,000 and $366,000 jointly), you will pay an extra $50.70 per month for Part D.

If you make between $183,000 and $500,000 individually (or between $366,000 and $750,000 jointly), you will pay an extra $70 per month for Part D.

If you make greater than or equal to $500,000 individually (greater than or equal to $750,000 jointly), you will pay an extra $76.40 per month for Part D.

Coverage Gap

One important limitation in Part D to be aware of is the coverage gap, often referred to as “the donut hole.” The coverage gap begins after you have spent a certain amount on covered drugs. In 2023, the coverage gap starts at $4,660. Once you have spent $4,660 on your plan, you will be subject to the limits of your plan. You will pay no more than 25% of the cost of your medication. Some plans will have even more of a discount.

Understanding Part D

Understanding your best option for Part D can be difficult, but we can help you. When you’re unsure of which direction to go, we will be your Medicare GPS, guiding you to the best Medicare coverage possible!