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: it helps avoid 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 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.
- Another way is to enroll in a stand-alone prescription drug plan or a Medicare Advantage plan that includes prescription drug coverage. If you 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 Beck Insurance Agency in Whitehouse or Archbold, Ohio. Call Beck Insurance Agency at 419-446-2777, email us at help@beckinsurance.com, or click here to submit your request.
The Medicare Part D Plan is commonly called the Medicare prescription drug benefit. This is partially because, after 2006, prescriptions were no longer part of the Medicare plan and went into being a separate benefit that must be chosen. Prescription drugs have been a major news story for years. You have heard how the prices keep going up. But you have also heard about new medications entering the market that offer significant benefits.
If you are worried about the pricing, then getting the Medicare Part D Plan might be the right option for you. If you are interested in getting pricing for different Medicare Part D options in Archbold, Napoleon and Wauseon, OH, let Beck Insurance Agency do the searching for you
