Do I need to enroll in Medicare Part D Prescription Drug coverage?
According to the Centers for Medicare and Medicaid Services (CMS), those aged 65 and above should enroll in Part D during their initial enrollment period. Clients often wonder why they need this coverage if they don’t currently take prescription medications.
The reason is simple:
Doing so avoids future penalties should the need for coverage arise in the future. The penalty is calculated by multiplying 1% of the “national base beneficiary premium” ($34.70 in 2024) by the number of months without Part D or creditable coverage. This penalty is added to the monthly premium when you eventually enroll in Part D.
There are two ways to avoid this penalty:
If you have creditable drug coverage.
If you have coverage through your employer, you are exempt from enrolling in Part D initially. You won’t face a penalty if you sign up for a Part D plan when your employer coverage ends or is no longer creditable. Check with your HR department to confirm if your employer coverage is creditable.
Enroll in a stand-alone prescription drug plan or a Medicare Advantage plan.
Enrolling in either of these plans that includes prescription drug coverage avoids the penalty. If you do opt for a Medicare Supplement plan (Medigap), you must also enroll in a stand-alone prescription drug plan.
Understanding the enrollment timing and coverage options for prescription drugs can be complex. Contact us today to schedule an appointment for assistance.
For more information contact the Beck / Frost Insurance Agency. Call us at 419-446-2777, send an email to help@beckinsurance.com, or click here to submit your request today! You can also stop by and see us at one of our four convenient locations in Archbold, Napoleon, Holgate, or Whitehouse.
We do not offer every plan available in your area. Currently, we represent 10 organizations that offer 6,584 products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
