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Medicare Part D: How To Decide Whether To Take Medicare Part D

What If I Choose Not To Purchase Medicare Part D Coverage?

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If you currently have Creditable coverage with coverage at least as good as Medicare Part D: you can enroll in Part D later with no penalty provided that you sign up within 63 days of losing or dropping your current drug coverage through no fault of your own. If you lose the coverage because you fail to pay the premiums, that is your own fault and you will be subjected to a penalty.

If your current coverage is not as good as Medicare Part D, or you lose it through your own fault, or there is a gap of more than 63 days between coverages, you will pay a penalty.

  • The penalty is a higher monthly premium that you pay as long as you have drug coverage.
  • The penalty equals 1% of the average national drug premium for every month you went without creditable coverage. For example, let's make the numbers easy and say the cover of an average plan is $25 a month. That would mean there would be an addition of 25 cents (1% of $25) a month to add to your premium as long as you have drug coverage. If you do not enroll for four months, that becomes an extra dollar a month. Eight months equals $2. a month. Although the penalty is small, the amount can add up.

Alternative means to consider to obtain drug coverage are the following:

  • Qualify for Medicaid which includes drug coverage if your income and assets are limited enough. (To learn more, see Medicaid.)
  • Check out state assistance drug programs in the state in which you reside. If you have HIV, look at ADAP.

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