How Do Prescription Drug Plans Work?

Prescription drug plans for Medicare help pay for prescription drugs that you might need now or in the future. If someone doesn’t currently take prescription drugs, it's still recommended to consider getting a Medicare drug plan. While Medicare drug coverage is optional, it is typically offered to everyone with Medicare.


People who decide that they shouldn’t get it when they become eligible might have to pay a late enrollment penalty for the rest of their Medicare coverage plan’s life, which becomes problematic especially when one doesn’t have any other credible prescription drug plan. Since each plan can vary in specifications and cost, get in touch with us so that our professionals can help you learn more about our prescription drug plans for Medicare.


Here is important information you need to know about owning a prescription drug plan:


  • Annual Deductible — There is a deductible you must pay for a Part D plan. Your deductible may be different, or waived entirely, but the max amount you can be charged is $590 in 2025. You will pay a discounted price for your medications until you have satisfied the deductible. After that, you begin initial coverage.

  • Initial Coverage — During initial coverage, you pay a copay for your medications based on your plan’s formulary. Each prescription drug plan separates its medications into tiers. Each tier has a copy amount for which you are responsible. It is typically separated by generic drugs, preferred name brands, even more specialized medications, and etc. In 2025, the initial coverage cap is $2000 in True Out of Pocket costs. After you and the insurance company together have paid this amount, then you enter the Catastrophic Coverage phase.

  • Catastrophic Coverage – Once you have reached the catastrophic coverage phase you will pay nothing for your medications for the balance of the calendar year.

  • New in 2025! The Medicare Prescription Payment Plan is a new payment option in the prescription drug law that works with your current drug coverage. This new option allows you to contact your plan provider and request a 12 month payment plan. Doing so makes paying your portion of your prescriptions a little easier on the pocketbook.

How would I enroll?

Fill out the form and we will be in contact soon or press the "Click to Call" button above to call us today!


See Which Plans Are In Your Area Today

“We do 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.” 


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