Call SelectQuote
Work with one of our licensed insurance agents to get answers to your Medicare questions, unbiased comparisons of coverage and resources to simplify the entire process. Call 1-833-574-3011 (TTY: 1-877-486-2048) to get started.
Speak to a Licensed Sales Agent! Hours: Mon-Thur 7am-8pm; Fri 7am-7pm; Sat 9am-5pm; Sun 10am-3pm CT
The Medicare Advantage Annual Enrollment Period is here!Compare Medicare Advantage plans in your area now through 12/7.
Understanding Medicare Prescription Drug Plans For Seniors
SelectQuote’s licensed insurance agents can help compare Medicare plan options that may be available to you. It’s free and there’s no obligation to enroll.
No obligation to enroll
Medicare Prescription Drug Plans
Medicare Prescription Drug plans, also known as Medicare Part D, help cover the cost of both generic and brand-name medications. If you are already enrolled in Original Medicare (Part A and Part B), enrolling in a prescription drug plan can help provide broader coverage for prescription drugs. A Medicare Part D plan can be purchased as a standalone plan to supplement Original Medicare or to accompany a Medicare Supplement Plan.
Prescription Drug Plan Benefits and Considerations
- Prescription drug plans are operated by Medicare-approved private insurance companies.
- Part D plans help provide prescription drug coverage for both generic and brand-name medications.
- The cost of prescription drug coverage varies depending on the plan you choose, which medications you use, and if your pharmacy is in network.
- Prescription drug coverage and plans can change from year to year.
Consider the following questions as you apply for a Medicare Prescription Drug plan:
- Does the prescription drug plan cover all of your current prescriptions?
- Are the premiums for the Medicare Part D plan competitive compared to other options?
- Does the plan work with your preferred pharmacy or allow you to order your medications through the mail?
No obligation to enroll
Phases of Prescription Drug Coverage
Medicare Part D plans help Medicare beneficiaries cover the costs of prescription drugs. As a Medicare beneficiary, out-of-pocket prescription drug costs may change over time depending on which phase you are in. The phases of prescription drug coverage (Medicare Part D) include:
Medicare Deductible Period
The first phase of prescription drug coverage is the Medicare Deductible Period. During the deductible period, you’ll be expected to pay the full negotiated amount for your covered prescription drug costs until you meet your Medicare Part D plan deductible. Deductibles vary from plan to plan, but should not exceed $590 in 2025.
Medicare Initial Coverage Period
The Medicare Initial Coverage Period starts immediately if you do not have a deductible ($0) or if your prescription drug payments equal your prescription drug plan’s deductible (max $590 in 2025). During the Medicare Initial Coverage Period, your Medicare Part D plan will pay some of the prescription drug costs, while you will pay a copayment (a set dollar amount) or coinsurance (a percentage of the drug’s cost) set by your plan.In 2025, once the total out-of-pocket cost of your prescriptions reaches $2,000, you enter the catastrophic coverage phase.
Medicare Catastrophic Coverage Period
In 2025, the Catastrophic Coverage Period starts once you have reached $2,000 in out-of-pocket prescription drug costs. While in the Medicare Catastrophic Coverage Period, Medicare Part D beneficiaries will not be responsible for the cost of covered drugs for the remainder of the calendar year. In the past, beneficiaries would first enter a coverage gap known as the “donut hole” before qualifying for catastrophic coverage, but as of January 1, 2025, this coverage gap has been eliminated.
Prescription Drug Plan Costs
In 2025, the maximum annual deductible for a Medicare Prescription Drug plan is $590. Depending upon the plan, you may be charged the full Part D deductible, a partial deductible, or have the entire deductible waived.You will pay the network discounted price for your medications until you have satisfied the deductible, at which point you will pay a copay for your medications based on the drug formulary. As of 2025, the coverage gap previously known as the “donut hole” has been eliminated. Once you have met the $2,000 out-of-pocket cap on prescription drugs in 2025, your plan will assume the cost of covered drugs until the end of the calendar year.
Medicare Drug Plan Premiums by Income
According to Medicare.gov, your prescription drug plan costs could be higher if your income is over a certain threshold. This can be referred to as IRMAA—the Medicare Income-Related Monthly Adjustment Amount—and is an amount you can be expected to pay if your income is above the brackets set by the Social Security Administration. Your additional premium is typically a percentage of the national base beneficiary premium.
2025 Prescription Drug Plan Premiums Based on 2023 Income Tax Returns
Use the table below to get a better idea of what your 2025 prescription drug plan premium could be. Simply find the amount of your 2023 tax return to see what you could pay for your prescription drug plan premiums in 2025.
| Filing Status and Yearly Income in 2023 |
|---|
| Individual tax return | Joint tax return | Married and separate tax return | You pay each month (in 2024) |
|---|---|---|---|
| $106,000 or less in yearly income | $212,000 or less in yearly income | $106,000 or less in yearly income | Your plan premium |
| Above $106,000 up to $133,000 in yearly income | Above $212,000 up to $266,000 in yearly income | Not applicable | $13.70 + your plan premium |
| Above $133,000 up to $167,000 in yearly income | Above $258,000 up to $322,000 in yearly income | Not applicable | $35.30 + your plan premium |
| Above $167,000 up to $200,000 in yearly income | Above $334,000 up to $400,000 in yearly income | Not applicable | $57.00 + your plan premium |
| above $200,000 and less than $500,000 in yearly income | Above $400,000 and less than $750,000 in yearly income | Above $106,000 and less than $394,000 in yearly income | $78.60 + your plan premium |
| $500,000 or above in yearly income | $750,000 and above in yearly income | $394,000 and above in yearly income | $85.80 + your plan premium |
Medicare Enrollment Options for Prescription Drug Plans
A Medicare Prescription Drug plan is an elective form of Medicare coverage, which means that you’re not required to enroll in one. To avoid any potential penalties and ensure prescription drug coverage when you need it, you should enroll in a Medicare prescription drug plan when you are first eligible for Original Medicare.You can make changes to your prescription drug coverage during the Medicare Advantage and Prescription Drug Plan Annual Enrollment Period (AEP), which runs from October 15 to December 7 each year.Part D plans can change their formulary and benefits each year. The formulary determines how much of the cost of each medication they will cover, so it’s a good idea to review your drug coverage during AEP. Even if your medications don’t change, it is possible you could save money on a different plan, but if you’re happy with your prescription drug plan, you can simply allow it to renew automatically at the end of the year.At SelectQuote, we can help you navigate your Medicare plan options before you sign up for a Medicare prescription drug plan.
Let SelectQuote Help You Compare Medicare Plans
SelectQuote’s licensed insurance can help you save time by comparing Medicare plans on your behalf. It’s free and there’s no obligation to enroll.
No obligation to enroll
We do the shopping. You do the saving.
No obligation to enroll
SelectQuote Senior Insurance Services is a division of SelectQuote Insurance Services. © 2025 SelectQuote Senior Insurance Services. All rights reserved.
Please see the Disclosures Page for more information.
MULTI-PLAN_SQSRW2026_M
Looking for an affordable Medicare plan? Let us help.
We’ll call you.
If you’re pressed for time, complete this form and a member of our team will call you at your selected time.