Prescription Drug Plans (PDP) can be stand-alone or built into a Medicare Advantage plan. Stand-alone PDPs most commonly work in conjunction with Original Medicare and a Medicare Supplement Plan (Medigap). Prescription Drug plans, either stand-alone or as part of a Medicare Advantage plan, are required coverage when you become eligible for Part A or B.
* If you do not elect to start this coverage, when you're first eligible, you may be penalized when you do begin Prescription Drug coverage. Medicare requires continuous creditable drug coverage and many times you'll need to prove you had the coverage. Penalties accrue monthly during the time that there is no creditable drug coverage in place and those penalties stay with you for the rest of your life, payable monthly along with your Prescription Drug Plan premium.
**Not all employer group plans are considered to have creditable PDPs.
Prescription drug coverage helps to off-set the monthly costs of your prescription drugs. Stand-alone PDPs have a monthly premium and the copays for your prescription drugs will vary based on the medications that you have been prescribed. Copays are based on the Tier Level of each of your medications and the tier is determined by where the medication is on the formulary for your drug plan.