Medicare Part D Premiums
What Is Part Medicare Part D?
Medicare Part D is prescription drug insurance run by private insurance companies approved by Medicare. These plans (sometimes referred to as “PDPs”) are the drug coverage of Medicare. To enroll in a Part D plan you must have Medicare Part A or Part B and live in the service area of the Medicare drug plan you wish to join.
If you decide to wait on joining a Medicare drug plan when you are first eligible, and you don’t have other credible prescription drug coverage, you will likely pay a late enrollment penalty. If you have creditable coverage through another source (group health plan, union benefits, VA, etc) you will not be penalized if you wait to sign up at a later time for your drug plan.
How much does Part D Cost?
When it comes to Part D plans, each plan can vary in cost and drugs covered. However the national average for prescription drug plans has ranged from around $30 - $45 over the past 5 years.
Also your Part D monthly premium could be higher based on your income. This includes drug coverage you get through Medicare Part D or a Medicare Advantage Plan (Part C).
Which tax return will they use to determine my income?
To determine your income related monthly adjustment amount, Social Security will look at your tax return from two years ago. For example, in 2015, Social Security will look at your 2013 tax return.
Does Medicare or Social Security charge this amount?
This amount is taken out of your social security check. If you are not receiving social security yet, but are receiving Medicare Part B benefits you will receive a quarterly bill for Part B insurance.