Now that the Annual Enrollment Period has begun it’s a great time to dive into the topic of Part D of Medicare. Part D is known as your drug coverage. Part D is an optional benefit offered through Medicare if/when you are eligible for Medicare. (You can get a drug plan as long as you have part A of Medicare) If you do not get a Prescription Plan when you sign up for Medicare you will possibly be penalized in the future when you do decide to sign up. The only reason you would not be penalized is if you have another Prescription Plan form a creditable place or if you receive extra help from a government program. When you go on to Medicare you are not required to purchase a prescription plan, but if you do not have creditable coverage and decide to sign up for Part D at a later date you will receive a permanent penalty of roughly 32 cents per month for each month you didn’t have coverage. Also Part D plans can only be purchased during your open enrollment period or during annual enrollment period.
If you are penalized you will be required to pay this as long as you have a Prescription Plan through Medicare. A Prescription Plan can be included with an Advantage Plan but must be purchased separately if you have Original Medicare or Original Medicare with a Supplement.