AARP: Medicare Part D
Medicare Part D is a federal program to subsidize the costs of prescription for Medicare beneficiaries in the United States. It was enacted as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and went into effect on January 2006. The drug benefit is not part of the 'Original' Medicare program, which includes Part A for hospital care Part B for physician, outpatient care and durable medical equipment. The benefit is administre by insurance plans that are reimbursed by the Centers for Medicare and Medicaid Services. Beneficiaries can obtain the Medicare Drug benefit through two types of private plans: beneficiaries can join a Prescription Drug Plan for drug coverage only or they can join a Medicare Advantage plan that covers both medical services and prescription drugs There are 34 PDP regions and 26 MA regions in the U.S. The drug plans control drug costs through a system of tiered formularies in which lower cost drugs are assigned to lower tiers and thus are easier to prescribe.
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