Part D is prescription drug coverage to supplement the coverage of Medicare Part A and Part B. It can be a standalone policy, or it can be included in a package with Part C.

Medicare Part D is purchased through private insurers. While the premiums vary, they tend to range from $15- $150 a month. There was a maximum deductible of $360 for these plans in 2016, after which the insurer would trigger 75/25 coinsurance or something in that range.

During that time the policy will pay 75% of prescription costs but will stop at the point where the company and you have cumulatively paid $3,310 (also as of 2016). If your prescription drug costs exceed that amount, you pay every single penny between $3,310 and the catastrophic trigger point, which is currently $4,850. If your costs exceed even the $4,850 boundary, you’ll only have to pay about pay 5% of the costs after that threshold, and the insurer pays the rest.

A person will need to determine their expected prescription costs and weigh them against the possible help they could get from a Part D plan.

Should I buy a Medigap policy?
What is Medicare Part A?
What is Medicare Part B?
What is Medicare Part C?