GLOSSARY · MEDICARE

Medicare Part D

Standalone prescription drug coverage; required to avoid permanent late enrollment penalty.

Medicare 📋 Reviewed by InsureCo Editorial Team · Updated April 30, 2026
Quick definition: Standalone prescription drug coverage; required to avoid permanent late enrollment penalty.

Full explanation

Medicare Part D is the prescription drug benefit. Standalone Part D plans are bought separately to pair with Original Medicare + Medigap. Many Medicare Advantage plans bundle Part D (called MA-PD plans). The 2026 Part D structure includes a new $2,000 annual out-of-pocket cap (a major change from prior years), an average premium of $40-$60/month, and a maximum deductible of $590. If you don't enroll in Part D when first eligible and don't have other creditable drug coverage, you'll pay a permanent late enrollment penalty added to your premium for life. The penalty is 1% of the national base premium ($36.78 in 2026) per month you went without coverage, multiplied by the number of months.

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