What is Medicare Part D?

Medicare prescription drug coverage is insurance regulated by Medicare and offered by private insurance companies that are approved by Medicare.  Enrollment in these plans happens at specific enrollment times during the year.  If you decide against enrolling in a Medicare Part D drug plan when you’re first eligible, and you don’t have other credible prescription drug coverage, you will likely pay a late enrollment penalty. The current penalty is 1% of the cost of an average Medicare Part D plan in the country per month.  The penalty will increase every month you go without Medicare Part D prescription coverage. 

Example - You become eligible for Medicare Part D in January but choose not to take it.  You then decide a year later that you want it.  Medicare may charge you a 12% penalty of the average cost of a plan.  The penalty will be charged for life.  So as the average cost of insurance increases so does your penalty.

What does this mean to the consumer?

We feel that Part D RX Plans are one of the most confusing areas of Medicare. Our clients share this opinion also. Our philosophy is thus a customized one. …ie…no one plan fits all people. What this means is that we prefer to discuss your personal prescription use directly. We customize a plan suited to your specific needs. Only by doing this can we assure that you will be on the best, most cost effective plan.  Email us or call us for a complete analysis of your current prescription use. 


If you are considering a Medicare Advantage Plan, you should consult with a Medicare Supplement Insurance agent to review your health care needs!