Davison Insurance Group




What is a Stand-Alone Prescription Drug Plans (PDP)?

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Prescription Drug Plans, also known as PDP or Medicare Part D are drug coverages that private insurance companies offer to eligible people. Original Medicare Part A & B and Medigap do not provide drug coverage, therefore a Stand-Alone PDP is available for purchase. However, if a person decides not to purchase a PDP and does not have credible drug coverage, he or she will be subjected to a penalty.

Part D penalty example:

  • For every month when you don’t have a credible drug coverage, a penalty of 1% of your monthly premium will be added once enrolled to a Part D
  • 2022 PDP National Base Premium = $33.06/mo
  • 1%of $33.06 = $0.3306
  • Multiply $0.3306 by the number of months you are late enrolling ($0.3306 x 10)
  • 2022 Part D Penalty = $3.31/mo rounded to the nearest 10 cents – $3.30/mo

Who can sign up for PDP:

  • Have acquired Part A & B.
  • Not currently on a MAPD plan.

What does Part D covers:

  • Generic Drugs
  • Refills
  • Quality
  • Usage
  • Tier 1, 2, 3, and 4. (Higher tiers have higher copayments)

When can enroll into a PDP Plan:

  • IEP (Turning 65)
  • AEP (Annual Election Period)
  • SEP (Special Election Period)

A list of drug formularies and further information can be found at Medicare.gov.

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