Prescription Drug Plan (PDP)

A Prescription Drug Plan (PDP) is a type of insurance plan offered by private insurance companies approved by Medicare to provide coverage for prescription medications to Medicare beneficiaries. These plans can be purchased as standalone coverage to complement Original Medicare or as part of a Medicare Advantage plan that includes prescription drug coverage. PDPs help beneficiaries afford the cost of their medications by offering access to a network of pharmacies where they can fill their prescriptions at discounted rates. Beneficiaries pay monthly premiums, deductibles, copayments, and coinsurance, and the plan covers the remaining costs of covered medications, ensuring individuals have access to the prescription drugs they need to manage their health conditions.