How Does Medicare Prescription Drug Coverage Work with Other Drug Coverage?

When it comes to prescription drug coverage, kupuna on Medicare have options. While most seniors get their prescription drug coverage through a Medicare Part D Plan or a Medicare Advantage Plan, some have other drug coverage available to them. These other options come in many forms, including employee or union benefits, Medicaid, or Veterans benefits. If you have other creditable* drug coverage, you may be wondering how they work with Medicare prescription drug coverage. Each type interacts differently, and we will provide some basic information in this article.


*creditable prescription drug coverage, or “creditable coverage”, is prescription drug coverage that on average pays at least as much as Medicare’s standard prescription drug coverage. In order to avoid a Late Enrollment Penalty (LEP), seniors must have creditable drug coverage or Medicare coverage.


As always, you can rely on your friendly Medicare agent at PBC to help you understand your Medicare drug coverage. Contact us today for FREE advice.

How Does Medicare Prescription Drug Coverage Work with Other Drug Coverage?


There are many different types of “other” drug coverage available to some seniors. This helpful list identifies the most common and how each interacts with Medicare coverage:


Employer or union health coverage


Probably the most common type of other drug coverage is coverage from an employer or union. This coverage is provided by your or your spouse’s current or former employer or union. Each year, your employer or union is obligated to inform you about whether this drug coverage is creditable. Before signing up for any other prescription drug coverage you should contact your benefits administrator to see if it will affect the coverage they are providing.


Medicare Supplement Insurance (Medigap) policy that includes prescription drug coverage


If you are grandfathered into an old Medigap policy that includes