Prescription Drug Plans
Prescription Drug Plans, also known as Part D or PDPs, provide Medicare drug coverage for prescription drugs and vaccines as a standalone plan that cannot be paired with a Medicare Advantage Plan. Enrollees can choose from a variety of Prescription Drug Plans with different costs and coverage.
Prescription Drug Plan Highlights
- Plans can be changed annually, typically only during the annual enrollment period
- No underwriting required and plans are guaranteed acceptance
- A plan’s formulary can change anytime during the year, but typically larger changes are made annually
- Because plans can change annually, it is important for Medicare beneficiaries to evaluate and check their prescriptions with upcoming plans
Navigating Changes Under the Inflation Reduction Act
The Inflation Reduction Act introduced new requirements for managing Medicare prescription drugs, which have significantly affected Medicare Prescription Drug Plans. While many of these changes are being implemented for upcoming plan years, the impact is expected to continue for the foreseeable future. It’s crucial to stay informed during this period of transition and advise clients to review their plan updates and check their prescriptions against plan formularies to ensure they avoid any unexpected changes or costs.
