Unless you’ve been hiding under a rock – and it would have to be a seriously large rock at this point – you’ve heard all sorts of talk about Medicare Part D over the past few years. Medicare Part D is a program that lets you choose from a number of prescription drug plans, provided you’re over the age of 65 and enrolled in Medicare. It’s different from the kind of prescription coverage you might get with a medical insurance plan, and if you have medical insurance benefits from a retirement package you won’t need to sign up.

If you’re not 65 yet, or if you’re not going to turn 65 in the next three months, no worries. Chances are pretty good that the program and the options will change between now and the time you need to choose. If you’re more than three months past your 65^th birthday, you need to really get moving. You might need to pay a penalty (in the form of a higher premium) for not having enrolled sooner.

Each year, the time to enroll is usually between November 15^th and the end of December. This open enrollment period is your one shot. If you miss it, you have to wait until next year.

That is, of course, unless you have both Medicare and Medicaid. If you have both, you’re in luck. You can enroll any time without a penalty. The same is true if your income falls below a certain line. That line is about $20,000 for one person or $25,000 for a couple.

One of the most frustrating things about Part D is the sheer number of options. You see, like medical insurance, these prescription plans can vary greatly from one state to the next. Some plans run as little as $10 or so a month, while others will go for $100 a month or more. The average plan falls somewhere between $30 and $60 a month.

Depending on the types of prescription medications you need and your specific health issues, Medicare Part D may or may not make sense. If you have relatively few prescriptions and they’re all inexpensive, your annual cost for prescriptions can be pretty low, making the drug plan unnecessary. On the other hand, even a single medication without a generic version available can cost several hundred dollars a year, making a Part D plan a good choice.

Ultimately, you need to make a decision that fits your situation. Find out what plans are available, look at your prescription needs and see if there’s a plan that makes sense for you.

Photo via Lee Nachtigal