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. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  5. Medicaid

    A joint federal and state program that helps low-income individuals ...
  6. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for ...
Related Articles
  1. Don't Put Off Your Year-End Tax Plan
    Taxes

    Don't Put Off Your Year-End Tax Plan

  2. Long-Term Care: More Than Just A Nursing ...
    Options & Futures

    Long-Term Care: More Than Just A Nursing ...

  3. Getting Through The Medicare Part D ...
    Options & Futures

    Getting Through The Medicare Part D ...

  4. What Does Medicare Cover?
    Insurance

    What Does Medicare Cover?

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center