Medicare Part D (Medicare prescription drug coverage)
Monthly premium: The Part D monthly premium varies by plan (higher-income consumers may pay more).
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Late enrollment penalty: You may owe a late enrollment penalty if, for any continuous period of 63 days or more after your Initial Enrollment Period is over, you go without one of these:
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A Medicare Prescription Drug Plan (Part D)
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A Medicare Advantage Plan (Part C) (like an HMO or PPO)
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Another Medicare health plan that offers Medicare prescription drug coverage
In general, you'll have to pay this penalty for as long as you have a Medicare drug plan. The cost of the late enrollment penalty depends on how long you went without Part D or creditable prescription drug coverage. Learn more about the Part D late enrollment penalty.
Deductibles, copayments, & coinsurance: The amount you pay for Part D deductibles, copayments, and/or coinsurance varies by plan. Look for specific Medicare drug plan costs, and then call the plans you're interested in to get more details.
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What Medicare Part D drug plans cover
All plans must cover a wide range of prescription drugs that people with Medicare take, including most drugs in certain protected classes,” like drugs to treat cancer or HIV/AIDS. A plan’s list of covered drugs is called a “formulary,” and each plan has its own formulary. Many plans place drugs into different levels, called “tiers,” on their formularies. Drugs in each tier have a different cost. For example, a drug in a lower tier will generally cost you less than a drug in a higher tier.
Note
If you take insulin, you may be able to get Medicare drug coverage that offers savings on your insulin. You could pay no more than $35 for a month's supply. Find a plan that offers this savings on insulin in your state. You can join during Open Enrollment.
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Recently passed federal law will CAP consumers out of pocket drug cost at $2000 per year in 2025