part d - prescription drug plans
Key Parts of a Prescription Drug Plan
Medicare Part D prescription drug plans can vary by cost, covered medications, pharmacy networks, and plan rules. Understanding the basics can help you choose a plan that fits your prescriptions and budget.
Monthly Premium
This is the amount you pay each month to keep your prescription drug plan active, whether you use medications that month or not.
Deductible
Some plans require you to pay a certain amount for medications before the plan begins sharing costs. Deductibles can vary by plan and may not apply to every drug tier.
Copays & Coinsurance
A copay is a set dollar amount you pay for a medication, while coinsurance is a percentage of the drug’s cost. These amounts can change depending on the medication and pharmacy.
Formulary
The formulary is the list of medications covered by the plan. It is important to make sure your current prescriptions are included before enrolling.
Drug Tiers
Plans often place medications into different tiers, such as preferred generic, generic, preferred brand, non-preferred brand, and specialty drugs. Lower tiers usually cost less.
Pharmacy Network
Your costs can vary depending on whether you use a preferred pharmacy, standard pharmacy, mail-order pharmacy, or an out-of-network pharmacy.
The best prescription drug plan is not always the one with the lowest premium — it is the plan that best fits your medications, pharmacies, and total yearly costs.
Want the Big Picture?
Prescription coverage is only one piece of Medicare. See how Part D fits into the bigger picture.
Our complimentary Understanding Medicare — 2027 Edition guide walks you through the Medicare essentials in clear, straightforward language.
Find Plans Available in Your Area
Enter your ZIP code to see Medicare Advantage and Supplement plans available near you. We’ll help you compare options and find the best fit for your needs.
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Plan availability, pricing, and benefits vary by location. That’s why starting with your ZIP code is the best way to see accurate options.
Prescription drug plans can often times be the most expensive part of a Medicare plan so it's important to compare your medications every year.
We may not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.