How do my drugs and drug tiers affect what I pay?
All Medicare Prescription Drug plans have a standard level of prescription drug coverage. This coverage is set by Medicare. However, plans differ in the specific drugs they cover and how they divide these drugs into tiers. The tiers determine what you’ll pay.
Every Medicare Part D plan has a formulary, or drug list, that shows all the brand name and prescription drugs it covers. Usually, drugs in lower tiers will cost less and drugs in higher tiers will cost more.
Below is an example of a tier structure for a typical Medicare prescription drug plan. The actual tier structure for the plan you choose may vary.