Medicare Part D Fact Sheet
What is Medicare Part D?
Part D helps cover prescription drugs. Plans are offered by private insurers approved by Medicare.
What Part D Covers
Generic and brand-name drugs
Drugs on the plan’s formulary (covered drug list)
Coverage through tiers (different costs for different drug types)
Costs (2024)
Average national premium: $34.70/month
Deductible: Up to $545 (varies by plan)
Copays/coinsurance vary by drug tier and pharmacy choice
Penalties
If you don’t sign up for Part D when first eligible (and don’t have creditable drug coverage), you pay a late penalty:
1% of the national base premium for each full month you were eligible but not enrolled
Added permanently to your monthly premium
Brad’s Story: Brad delayed enrolling in Part D for 20 months after he became eligible. In 2024, his penalty is 20% of $34.70 = $6.94 extra each month, permanently.
