Medicare medicine coverage plan, also referred to as Medicare Part D, is a type of insurance that provides Medicare coverage for a portion of your prescription drugs costs. Anyone who is eligible for Medicare is able to enroll for this plan. The plan covers both brand-name medications as well as generic medications. Although the plans are sponsored by Medicare, they are sold by private insurance companies and therefore the costs will vary.

Part D or Medicine Coverage Plan is obtained through private insurance companies. There are specific times during the year when you can enroll in a plan or perhaps switch from one plan to another. These plans are approved by Medicare and have a monthly premium. However, there is help available for people with limited incomes.

According to the FDA (Food and Drug Administration), generic medicines are similar in strength, safety, quality and function as compared to its brand-name counterpart. Generic medicines make use of the same active ingredients that are used in brand-name medicines and function in the same manner. Generic drug manufactures need to prove to the FDA that their medications function and perform in the same way as their corresponding brand-name medication. Since the active ingredients in both generic and brand name medications are same, they have the same benefits and risks involved. Researching and then manufacturing a medication costs a lot of money and since generic drug manufacturers do not develop a drug from scratch, the costs of the medications are far less. However, generic medications need to prove that they perform in the same way as a brand-name medication.

In order to have lower costs, Medicare plans place prescription drugs into different tiers. Each of these tiers cost a different amount. Each plan can divide the tiers in different ways. A medication in a lower tier would cost less as compared to a medication in a higher tier.

For example, generic drugs are placed in tier 1 as they cost the least. Tier 2 includes preferred brand-name medications and therefore would cost more than tier 1 medications. Tier 3 includes non-preferred brand-name medications and would cost more than both tier 1 and 2.

Any category of medicines under Medicare coverage is also covered under the drug coverage plan. However, there are specific categories of medications which are not covered under Medicare. These categories include fertility medications, barbiturates, benzodiazepines and over-the-counter smoking cessation medications. Since these plans are issued by private insurance companies, certain companies might offer to cover some medications which are not covered by Medicare, as an added benefit to the customers.

A Medicare drug coverage plan can be purchased as a single plan, or as a part of the Medicare Advantage Plan. The single plans are known as PDP or Prescription Drug Plans and provide coverage for medicine costs only. Medicare Advantage Plans which is also known as Medicare Part C, usually include a prescription plan in addition to health insurance coverage. Eligible individuals should enroll in a drug coverage plan to be covered. For people covered under the traditional Medicare model, the enrollment in both Medicare Part A and B is essential to be eligible for the drug coverage plan. In addition to the premium paid under Medicare Part B, participants would need to pay a monthly premium for Part D.

Since these plans for medicine coverage are issued by private insurance companies, certain brands of medications might or might not be covered depending upon which company you decide to go with. Some insurance companies might cover only certain brand name medications whereas others companies might mostly cover generic medications.