Prescription Drugs

Prescription Drug Plans - Medicare Part D

Part D of Medicare is the prescription drug benefit (PDP) made available to Medicare beneficiaries beginning in 2005. The participation in Part D is optional, but a penalty is charged for those who do not sign up when initially eligible for Part D. There is no qualification process with regard to income/assets, health status, or current prescription expenses.

Most beneficiaries sign up for Part D when they become eligible for benefits. The easiest way to gain information about PDP is to visit medicare.gov. This website is maintained by CMS and offers a personalized comparison for each beneficiary.

There are two ways to get Medicare prescription drug coverage during the annual enrollment period or initial coverage enrollment period:

  1. Join a Medicare prescription drug plan (this is in addition to Original Medicare)
  2. Join a Medicare Advantage plan or other Medicare health plan offering PDP coverage.

PDP is an insurance plan offered through private insurance companies or other organizations (like pharmacy chains) approved by CMS. Monthly premium, prescription cost and out of pocket expense varies by plan. "Formulary" is the list of drugs offered by a plan. Formularies vary by company. It is really important to review the formulary what drugs are covered.

Participation in a prescription drug plan provides cost savings on maintenance medications and protection from unexpected drug expenses. From the Medicare.gov web site, "Even if you don't use a lot of prescription drugs now, you should still consider joining. As we age, most people need prescription drugs to stay healthy. For most people, joining now means protection from unexpected prescription drug bills in the future."

Our representatives are certified and appointed with numerous PDP plans.


This Web site is intended for general information purposes only. It does not nor is it intended to constitute legal, tax or investment advice. Alliance America is not a lawyer, registered investment advisor or investment advisor representative, and is not engaged in the practice of law or the business of investment advice.