Medicare Part D

AAA

DEFINITION of 'Medicare Part D'

A prescription drug benefit program that was created through the U.S. Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The "D" stands for "drugs". The program gives Medicare recipients these basic choices: stay in traditional Medicare without signing up for the prescription drug benefit outlined in the Act, stay in traditional Medicare and enroll in a Medicare drug plan, enroll in other Medicare plans, or enroll in a comprehensive private health plan (which may or may not cover prescription costs). The program began providing coverage for users on Jan 1, 2006.

INVESTOPEDIA EXPLAINS 'Medicare Part D'

Those who enroll in the Medicare Part D program choose from a large list of approved drug plans which do not cover all prescription drugs, so it is important that they choose a plan that meets their needs. Senior citizens and seniors' advocacy groups have criticized the program for not being comprehensive enough and adding to the already high costs of getting the drugs that seniors need for medical reasons. As a result of Medicare Part D, a number of insurance products are expected to cover the gaps in prescription drug coverage.

RELATED TERMS
  1. Medicare Doughnut Hole

    A range of total prescription drug spending in the Medicare Part ...
  2. Medicare Part B Premiums

    A monthly fee that Medicare participants pay for medical insurance ...
  3. Medicare Catastrophic Coverage ...

    A government bill designed to improve acute care benefits for ...
  4. Long-Term Care (LTC) Insurance

    Coverage that provides nursing-home care, home-health care, personal ...
  5. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for ...
  6. Group-Home Care

    Care given to a group of people with similar disabilities within ...
RELATED FAQS
  1. What would privatized Social Security mean for Americans?

    The current Social Security system in the United States operates in a pay-as-you-go framework; the Social Security taxes ... Read Full Answer >>
  2. What is the difference between ex-ante moral hazard and ex-post moral hazard?

    Moral hazard refers to the way a party acts in a particular situation if protected against risk. It describes the behavioral ... Read Full Answer >>
  3. How do I become an underwriter?

    To become an insurance underwriter, you typically need a bachelor's degree. However, some employers may hire you as an underwriter ... Read Full Answer >>
  4. What country spends the most on healthcare?

    The United States currently ranks highest in health care spending. Of the countries spending the most on health care, the ... Read Full Answer >>
  5. How do I calculate my Social Security break-even age?

    Individuals nearing retirement can implement a number of strategies to cover living expenses during their post-working years. ... Read Full Answer >>
  6. What types of regulations are in place regarding fringe benefits?

    Government influence on non-salary employee benefits, also called "fringe benefits," comes, in large part, through the tax ... Read Full Answer >>
Related Articles
  1. Taxes

    Don't Put Off Your Year-End Tax Plan

    From sales tax deductions to credit reports, check out what items should be on your financial checklist.
  2. Options & Futures

    Long-Term Care: More Than Just A Nursing Home

    Learn what you can do now to keep your options open in the future.
  3. Options & Futures

    Getting Through The Medicare Part D Maze

    Having trouble sorting through your prescription drug coverage options? We offer some solutions to the confusing process of selecting the right Medicare Part D coverage for you.
  4. Insurance

    What Does Medicare Cover?

    Don't assume you're insured. Find out what you can expect from this healthcare program.
  5. Insurance

    Filling In The Medicare Gaps

    Basic Medicare is not a perfect fit for everyone - sometimes, extra policies are required to suit a person's needs.
  6. Professionals

    Tips for Retiring Without Long Term Care Insurance

    Long term care insurance is as pricey as it is important. Here are tips for how to manage retirement and meet healthcare costs without a policy.
  7. Personal Finance

    The Economic Cost Of An Obese Society

    Slowly becoming a global health epidemic, the prevalence of obesity has risen drastically over the past two decades.
  8. Retirement

    Some Tax Considerations For Your Retirement Income

    Even if you don’t plan to retire, it’s still a good idea to think ahead about where to live, your income and how it all interacts with Social Security.
  9. Professionals

    Advisors Should Consider a 'Dementia Protocol'

    Diminishing mental capacity can strike any aging client, that's why advisors should push clients and their families to incorporate a 'dementia protocol.'
  10. Professionals

    How Advisors Can Help Protect Vulnerable Clients

    With longevity increasing, advisors will need to consider how to best serve aged clients.

You May Also Like

Hot Definitions
  1. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  2. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  3. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  4. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  5. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  6. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
Trading Center