Part D Prescription Drug Plans

Medicare Part D helps cover the cost of prescription drugs and can be added to Original Medicare or included with certain Medicare Advantage plans. You can sign up for Part D during your Initial Enrollment Period, which starts three months before the month you turn 65 (or if you’re under 65 and eligible for Medicare).

Important: If you don’t sign up for drug coverage on time—and you don’t have creditable drug coverage through another source (like a retiree plan)—you may face a permanent late-enrollment penalty on your premiums.

If you already have a standalone Part D plan or a Medicare Advantage plan with drug coverage, you can switch plans each year during the Annual Enrollment Period (AEP), from October 15 to December 7.

We can help you compare options and make sure you’re enrolled in the plan that’s right for your needs.

Big updates are coming to Part D in 2025:

• $2,000 Annual Out-of-Pocket Cap: After you spend $2,000 on covered prescriptions, you’ll pay nothing for the rest of the year.
   
• Elimination of the “Donut Hole”: Cost-sharing will remain consistent throughout the year—no more mid-year jump in costs.
   
• Deductible Increase: The standard deductible is rising slightly to $590, though this varies by plan.
   

Part D in 2025 will have three phases:

1. Annual Deductible: You pay 100% of covered drug costs until your deductible is met.
    
2. Initial Coverage: After meeting the deductible, you’ll pay 25% coinsurance until your total out-of-pocket spending reaches $2,000.
    
3. Catastrophic Coverage: Once you hit the $2,000 cap, you pay nothing for covered prescriptions for the rest of the year.
    

These changes—part of the Inflation Reduction Act—are designed to make prescription costs more predictable and affordable.

Review your coverage every year, especially if you start taking new medications.

• Use the Medicare Plan Finder at Medicare.gov to compare plans and see your estimated monthly drug costs.
   
• Or call us—we’ll review your medications and help you find the plan that gives you the best coverage at the lowest cost.

If you have limited income and resources, you may qualify for Medicare’s Extra Help program, which can reduce or eliminate your Part D premiums and out-of-pocket drug costs.

• 2024 income limits:
   
  • Single: Up to $22,590 with assets under $17,220
     
  • Married: Up to $30,660 with assets under $34,360

Additionally, read about the ways to lower your drug costs on Medicare.gov.

This information was obtained from www.medicare.gov

By contacting the phone number on this website you will be directed to a licensed agent.