Part D is the Medicare prescription drug plan. It went into effect on Jan. 1, 2006. In order to receive Part D benefits, if you are on Medicare you must enroll in a stand-alone prescription drug plan (PDP) or Medicare Advantage (Part C) plan with prescription drug coverage (MA-PD). If you are dual eligible, that is, enrolled in both Medicare and Medicaid, you are automatically enrolled in a Part D prescription drug plan.
Unlike original Medicare (Parts A and B), Part D coverage is not standardized. Each Plan Provider has the option to choose what drugs they cover and at and what level.
Medicare has made available an interactive online tool called Prescription Drug Plan Finder that will allow you to compare drug availability and costs for all plans in a geographic area.(www.medicare.gov/pdphome.asp).
Your employer may offer to retirees its own drug plan that may be better than Part D. In a standard plan, Part D covers some of the cost of medicines up to $2,400 per year. There is a $265 deductible (in 2007), and then participants pay 25 percent of covered costs up to a $2,400 initial coverage limit.
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