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Medicare Part D can help reduce the cost of prescription drugs. We explain different Medicare drug plans and take a look at some of the best Medicare Part D plans.
Around
- Best overall: UnitedHealthcare | Skip to review
- Best for additional no-cost perks: Cigna | Skip to review
- Best for low copays of Tier 1, 2, and 6 drugs: Humana | Skip to review
- Best for prescription vitamins and minerals: Aetna | Skip to review
- Best for customer satisfaction: Blue Cross Blue Shield | Skip to review
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Medicare is a federal insurance program for people who are 65 years old or older, although they may also qualify if they have a chronic medical condition such as permanent kidney failure, or receive disability benefits.
Medicare Part D can help cover the cost of prescription drugs. These plans are part of the government’s Medicare program but are offered and managed through private insurers, such as the ones included in this article. All Medicare Part D plans have to offer a standard level of coverage but may differ in terms of, for example, the drugs they cover and the monthly premiums involved.
Read our in-depth explanation of Medicare Part D here.
Best overall: UnitedHealthcare
- State availability: all 50 states, including Washington DC, Puerto Rico, and other American territories
- Drug coverage:
- CMS star rating: 3 stars
United Healthcare overs Medicare Part D coverage to the most people, covering all 50 states, Washington DC, Puerto Rico, and four other inhabited American territories.
It offers three Part D plans:
- AARP Medicare Rx Walgreens from UHC: This plan offers a lower copay and deductible Tier 1 preferred generic drugs, Tier 1 prescriptions, and lower costs for all Medicare Part D covered drugs in the catastrophic coverage period.
- AARP Medicare Rx Preferred from UHC: This plan offers the most extensive drug coverage and a broader pharmacy network. People will pay a higher copay for Tier 1 preferred generic drugs, and receive the same benefits as the Walgreens plan.
- AARP Medicare Rx Basic from UHC: This plan offers a network of over 65,000 pharmacies, and the same benefits as the Walgreens plan. It has the highest annual prescription deductible of $545.
Read our comprehensive breakdown of UnitedHealthcare’s Part D plans here.
The Preferred plan also offers a lower copay for a 3-month supply of Tier 1 and 2 prescriptions with Optum Home Delivery, making this a convenient option for those who are in more rural locations or have mobility issues.
The company’s website features a lot of information about how Medicare works and the different options a person may have when looking to enroll in Medicare, which could be useful for people who would like guidance in terms of purchasing health insurance.
The UnitedHealthcare website features tools people can use to enter different information, such as the drugs they need, when comparing the price of the different plans.
Pros
- offers a lot of guidance around Medicare on its website to help its members make informed decisions
- offers a large network of over 65,000 pharmacies
- covers a wider range of people than other companies
- offers a comprehensive breakdown of costs of each plan
Cons
- people have to contact Customer Services to access the information available on the UnitedHealthcare website in languages other than English
- UnitedHealthcare’s home delivery service is not available in some locations
Best for additional no-cost perks: Cigna
- State availability: all 50 states, including Washington DC and Puerto Rico
- Drug coverage: covers over 3,000 common medications
- CMS star rating: 3 stars
Cigna is available in all 50 states, including the District of Columbia and Puerto Rico. The company’s website states it participates in cost-sharing with a network of pharmacies to save its clients more money.
The company also provides some perks at no extra cost when enrolling for a Part D plan, such as savings on LASIK vision correction, yoga products, and acupuncture.
Cigna offers three Medicare Part D plans:
- Saver: This plan offers low generic copays and a standard deductible.
- Secure: This plan offers low generic copays, a standard deductible, and a large pharmacy network.
- Extra: This plan offers a wider drug list, gap coverage for many generic drugs, a low deductible, and a large pharmacy network.
The company can help people find the plan that best fits their needs, either through its website or over the phone.
Once enrolled, people can manage their Medicare plan through myCigna, a secure portal available online or as a phone app. Through this portal, people can access their claims, coverage, ID cards, and payments.
Pros
- available in all 50 states
- transparent pricing and features of all plans
- participates in a cost-sharing network with pharmacies
- offers savings on health and wellness products at no extra cost
Cons
- premiums vary significantly by state, so a person may pay more depending on where they live
- may be difficult to contact Cigna between April and September, as they use an automated phone system during this time
Best for low copays of Tier 1, 2, and 6 drugs: Humana
- State availability: all 50 states, including Washington DC and Puerto Rico
- Drug coverage: covers over 3,700 common medications
- CMS star rating: 3.5 stars
Covering all of the states, DC, and Puerto Rico, Humana offers three Medicare Part D plans:
- Humana Walmart Value Rx Plan: This plan offers a lower copay for a 30-day supply of Tier 1 and 2drugs, a range of preferred cost-sharing pharmacies, and additional gap coverage for Tier 1 and 2 drugs.
- Humana Basic Rx Plan: This plan offers basic coverage with an affordable premium. The company states it fully subsidizes auto-enrolled members who live in regions under the low-income benchmark.
- Humana Premier Rx Plan: This plans offers a lower copay for a 90-day supply of Tier 1 and 2 drugs at CenterWell Pharmacy, a lower copay for a 90-day supply of Tier 6 Medicare drugs at preferred pharmacies, a range of preferred cost-sharing pharmacies, additional gap coverage for Tier 1, 2, and 6 drugs, and reduced deductibles in most regions.
Read our comprehensive breakdown of Humana’s Medicare Part D plans here.
Average monthly premiums will vary depending on where a person lives and which plan they use. People can check how much they can expect to pay on Humana’s website.
People can enroll on the website or by calling to schedule an appointment with a Humana representative. Spanish-speakers can translate the website into Spanish for easier communication and understanding.
Pros
- offers a Spanish translation of the website
- offers appointments with licensed Humana sales agents
- has a website feature enabling people to import their prescription medications to save time when reviewing different plans available
- additional gap coverage for Tier 1, 2, and 6 drugs
Cons
- does not provide an average monthly premiums for each plan
- does not offer as many perks as other companies
Best for prescription vitamins and minerals: Aetna
- State availability: all 50 states, including Washington DC
- Drug coverage: over 2,500 common medications
- CMS star rating: 3 stars
Some of Aetna’s plans offer $0 copays for a range of prescription vitamins, minerals, and generic erectile dysfunction (ED) drugs, making this a good option for those who need coverage other companies may not offer.
The company offers three Medicare Part D plans:
- SilverScript Smartsaver: This plan has the most affordable average monthly premiums.
- SilverScript Choice: This mid-range plan offers a lower copay for Tier 1 drugs at preferred pharmacies.
- SilverScript Plus: This plan is the most expensive one Aetna offers. It provides a lower copay for Tier 1 and 2 prescriptions at preferred pharmacies and a lower deductible for Tier 1 and 2 drugs, as well as covering prescription vitamins, minerals, and ED drugs.
Read our comprehensive breakdown of Aetna’s Medicare Part D plans here.
People can choose to translate the website to Spanish or talk to a licensed Aetna Medicare agent over the phone for easier communication.
Pros
- offers the most affordable plans, dependant on a person’s state of residence
- offers a Spanish language option on its website
Cons
- does not offer as many benefits per plan as other companies
Best for customer satisfaction: Blue Cross Blue Shield
- State availability: dependant on plan
- Drug coverage: dependant on state
- CMS star rating: 4 stars
Blue Cross Blue Shield is a collection of independent insurance companies, which means that it does not cover as many people as others who offer Medicare Part D drug plans. However, it has the highest CMS rating of the companies in this article.
Because Blue Cross Blue Shield has several independent insurance companies that provide plans, the average monthly premium, drug coverage, and plan benefits will vary depending on which state a person lives in. People can find out what coverage they can receive by entering their ZIP code into the website.
Pros
- has the highest CMS star rating of the companies in this article
- website provides useful general information about Medicare
Cons
- not available in all states
- coverage, price, and premiums will vary state by state
In the following table, we compare the best Medicare Part D plans on different points:
| State availabiluty | Drug coverage | CMS star rating* | |
|---|---|---|---|
| UnitedHealthcare | all 50 states, including Washington DC, plus 5 US territories | over 1,500 common medications | 3 stars |
| Cigna | all 50 states, including Washington DC, and Puerto Rico | over 3,000 common medications | 3 stars |
| Humana | all 50 states, including Washington DC, and Puerto Rico | over 3,700 common medications | 3.5 stars |
| Aetna | all 50 states, including Washington DC | over 2,500 common medications | 3 stars |
| Blue Cross Blue Shield | dependant on plan | dependant on state | 4 stars |
* All CMS ratings are from the Medicare.gov plan comparison page.
Private companies offer Medicare Part D plans, so the costs and features available can vary widely depending on which company a person chooses. When choosing the best Medicare Part D plan, a person may consider:
- State of residence: Most companies offer plans for all states. However, some, such as Blue Cross Blue Shield, may not be able to offer coverage in every state. People who live in U.S. territories will have even less choice.
- CMS rating: The Centers for Medicare and Medicaid Services (CMS) uses a star rating to evaluate how good each insurance company’s Medicare Part D plan is. People may wish to use Medicare.gov’s comparison page to make sure they are choosing the best plan available in their area.
- Drug coverage: People should always check whether their chosen insurance company covers the prescription medication they need.
- Affordability: Some plans offer more affordable premiums. However, these plans are less likely to offer as many benefits or cost savings as more expensive ones. People should consider how much they will need to spend out-of-pocket to decide if it will be more affordable in the long-term to enroll in a more expensive plan.
- Extra benefits: Some companies, such as Cigna, offer extra benefits and savings at no extra cost, such as discounts on LASIK, acupuncture, and more.
The cost of Medicare Part D can vary quite significantly depending on the company and plan a person chooses.
Generally, a person can expect to pay for premiums, copays, and deductibles. Coverage and rates vary depending on the plan. A person’s location and income may also impact how much Medicare Part D costs.
According to the CMS, most people can expect to pay an average of $55.50 per month in total Part D premiums, which is less than 2023’s average monthly payment.
Out-of-pocket costs will increase as a person reaches their coverage gap, or “donut hole.” During this period, people can expect to pay 25% of the cost of each prescription.
Learn more about how much Medicare Part D costs here.
Extra Help program
Extra Help is a Medicare program to help people with lower incomes afford their prescriptions. If a person is eligible, they will not need to pay any money towards premiums or deductibles and will pay up to $11.20 for each brand name drug.
People who receive full Medicare coverage, benefit from a Medicare Savings Program, or get Supplemental Security Income payments from Social Security automatically enroll in this program. Otherwise, people will need to meet affordability criteria in order to apply.
Learn more about the Extra Help program, and how to apply, here.
Private insurance companies provide Medicare Part D, though Medicare approves the plans that these companies offer.
Part D is a voluntary plan that covers the cost of prescription drugs. The monthly premiums vary, though Medicare sets the maximum annual deductible that insurance companies can charge. In 2024, this amount is $545.
The basiscs of Medicare Part D include:
Deductibles
The deductible is the amount a person must spend out of pocket each year before their insurer pays for any prescription medication. While it is possible to enroll in a Medicare Part D plan without a deductible, not all plans offer this benefit.
Once a person pays their deductible, they will pay either copayment or coinsurance for their prescription medications, with Medicare paying the rest of the cost.
Initial coverage
After meeting the deductible, a person’s Medicare Part D plan will pay for part of the cost of their prescriptions. The length of a person’s initial coverage period depends on the costs of their prescription drugs, as well as the structure of a person’s plan and the features it offers.
Coverage gaps
The coverage gap is also known as the “donut hole”. This is the period a person enters after the total cost of their prescription drugs reaches a certain amount. During a coverage gap or donut hole, people are responsible for paying 25% of the cost of their prescriptions.
Catastrophic coverage
A person enters the catastrophic coverage period of their Medicare Part D plan once they have paid a certain amount in out-of-pocket costs for their prescriptions. During a catastropic coverage period, a person will not pay anything for their prescription drugs for the rest of the year.
A person is not automatically enrolled in Medicare Part D and must choose a plan and manually sign up for it.
Most people signing up for Medicare Part D for the first time will be able to enroll for three months before and up until three months after they turn 65 years old.
It may be possible to enroll during the open enrollment period, from October 15 through to December 7 each year. There is also a general enrollment period running from January 1 through to March 31. Otherwise, a person will need to pay a late enrollment fee.
A person can sign up for Medicare Part D online, by phone, in person, or by mail.
Read our guide of how to sign up for Medicare Part D in 2024 here.
Medicare.gov has a Medicare Part D comparison page that allows people to compare the plans available in their area. This is one of the easiest ways to compare plans.
Otherwise, people can research individual companies to determine which best meets their needs.
The donut hole is a coverage gap. This period occurs after a person passes the initial coverage of their Part D plan.
A person’s deductibles and copayments count toward this coverage limit, as does Medicare’s own financial contributions.
The deductible for Medicare Part D is the amount a person must spend out of pocket annually before their insurer starts to contribute to the cost of their prescriptions.
A person is eligible for Medicare Part D once they reach the age of 65 years or if they have a specific health condition. Anyone who meets these criteria who is enrolled in Original Medicare is eligible for Part D.
People become eligible to enroll in Medicare Part D when they reach 65 years of age or if they have a specific health condition or disability.
Private insurance companies offer Medicare Part D plans, though they are approved by Medicare. It is important for people to research different companies to make sure that their Medicare Part D plan meets their needs and preferences.