PART D – Prescription Drug Coverage:
- Helps cover the cost of prescription drugs
- Run by Medicare and Medicare approved private insurance companies
- May help lower your prescription drug costs and help protect against higher costs in the future
- If you decide not to join a Medicare drug plan when first eligible and you don’t have other creditable prescription drug coverage you will likely pay a late enrollment penalty if you join a plan later.
What is the Part D Coverage Gap or “Donut Hole”?
PART D Premium – varies by plan (the higher your income the more you will pay). See the chart below for estimated monthly premiums based on income as reported on your IRS tax return from 2 years ago and last year. If you income is above a certain limit, you will have to pay an Income Related Monthly Adjustment Amount (IRMAA) in addition to your plans premium.
What is the Part D late enrollment penalty?
- You may owe a late enrollment penalty if at any time after your Initial Enrollment Period ends; you go 63 or more days in a row without Part D or other creditable coverage.
- The penalty depends on how long you lack creditable prescription drug coverage
- It is calculated by multiplying 1% of the national base beneficiary premium ($34.10 in 2016) by the number of full uncovered months that you were eligible but didn’t join a drug plan and went without other creditable prescription drug coverage.
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