Medicare Part D (Prescription Drug Coverage)
Medicare Part D helps pay for prescription drugs. You get Part D by joining a stand-alone Prescription Drug Plan on top of Original Medicare, or by choosing a Medicare Advantage plan that includes drug coverage. Delaying Part D without other creditable drug coverage triggers a lifetime penalty.
What it means
- Part D plans are offered by private insurers and each has its own formulary, pharmacy network, and monthly premium. - In 2026, the Part D annual deductible cannot exceed $615, per CMS. - In 2026, the Part D initial coverage limit is $2,100 — after that, a new benefit design applies. - The Part D late-enrollment penalty is calculated as 1% of the national base beneficiary premium ($38.99 in 2026) for each full month you went without creditable drug coverage after becoming eligible.
Action steps
1. Make a current list of every drug you take, with dose and pharmacy. 2. Use the Medicare Plan Finder at medicare.gov/plan-compare to compare Part D plans that cover your specific medications. 3. If you have creditable coverage (like from an employer or VA), keep the annual notice — you'll need it to avoid a penalty later. 4. Enroll during your Initial Enrollment Period or during the Annual Election Period.
Deadlines
- Initial Enrollment Period: 7 months around your 65th birthday. - Annual Election Period: October 15 – December 7 to join, switch, or drop a Part D plan.
Answers in this topic
Questions
- How much can the Part D deductible be in 2026?
- In 2026 the Part D deductible cannot exceed $615, per medicare.gov.
- How is the Part D late enrollment penalty calculated?
- It is 1% of the national base beneficiary premium ($38.99 in 2026), multiplied by the number of full months you went without creditable drug coverage. The amount is added to your monthly Part D premium for as long as you have Part D.
Source:
Last verified: 2026-07-18