Prescription Drugs
Part D covers your prescription drugs, offered through private insurance companies approved by Medicare. Enrollment is optional — but if you don’t sign up when first eligible and go without creditable drug coverage, you’ll face a lifetime late enrollment penalty. Even if you don’t take many medications today, it’s often smart to enroll.
Our Process
How Part D Works
Part D plans use a formulary — a list of covered drugs divided into tiers. Lower tiers cost less, higher tiers cost more. You pay a monthly premium, an annual deductible, and then copays or coinsurance for your medications.
Tier 1
Generic Drugs
Lowest-cost medications that provide the same effectiveness as brand-name drugs.
Tier 2
Preferred Brands
Brand-name drugs offered at lower, negotiated prices within your plan.
Tier 3
Non-Preferred Brands
Higher-cost brand medications with increased out-of-pocket expenses.
Tier 4-5
Specialty Drugs
High-cost medications used for complex or chronic health conditions.
Statistics
2026 Part D Key Numbers
Deductible
Up to $615 (plan-specific)
Out-of-pocket cap
$2,100 — once hit, drugs are free for the year
Late enrollment penalty
1% per month without coverage, added permanently
Big news in 2026: The out-of-pocket cap for Part D is now $2,100 — a major improvement for people on expensive medications.
Extra Help program
Extra Help (Low Income Subsidy)
If you have a limited income, you may qualify for the Extra Help program — also called the Low Income Subsidy
(LIS). This can dramatically reduce your Part D costs, sometimes to just a few dollars per prescription. Ask us about
checking your eligibility.
What we do?
