Medicare Part D prescription drug plans

What Part D covers

Medicare Part D is prescription drug coverage from private plans approved by Medicare. You can get it two ways: as a standalone drug plan alongside Original Medicare (and a Medigap plan, if you have one), or built into a Medicare Advantage plan.

What’s new for 2027

Once your out-of-pocket spending on covered drugs reaches $2,400 in 2027, you pay nothing more for covered drugs that year. You can also join the Medicare Prescription Payment Plan, which spreads your out-of-pocket costs into monthly payments instead of paying large amounts at the pharmacy.

Source: CMS CY2027 Landscape file, Sept 2026.

Why the “cheapest” plan often isn’t

Two plans with similar premiums can produce very different yearly costs for the same person. These details drive the difference:

• Formulary: whether each of your drugs is covered at all
• Tiers: the copay or coinsurance for each drug
• Pharmacy: preferred pharmacies can cost much less than standard ones
• Restrictions: prior authorization, step therapy, and quantity limits

We enter your exact prescriptions and pharmacy and compare full-year costs, not just premiums.

Avoid the late-enrollment penalty

If you go 63 days or more in a row without Part D or other creditable drug coverage after you first become eligible, you may pay a late-enrollment penalty for as long as you have Part D. The penalty is 1% of the national base beneficiary premium for each month you went without coverage. Coverage from an employer, the VA, or TRICARE can count as creditable. Ask your plan for its creditable-coverage notice.

Frequently asked questions

Can I change my Part D plan every year?

Yes. During the Annual Enrollment Period (Oct 15 – Dec 7) you can switch drug plans for the next year. It’s worth reviewing every fall because formularies and pharmacy networks change.

What if I don’t take any prescriptions?

Many people still pick a low-premium plan to avoid the lifelong late-enrollment penalty and to be covered if a new prescription comes up.

Do I need Part D if I have a Medicare Advantage plan?

Most Medicare Advantage plans include drug coverage. If you choose a medical-only Advantage plan, you generally need other creditable drug coverage, such as from the VA or TRICARE.