Do I Need Prescription Coverage?

“Do I have to sign up for prescription coverage?”

The short answer is technically yes. You can decide that you don't want a drug plan. Nobody is going to force you to take it, but if you don't have a drug plan and you don't have a Medicare Advantage plan that includes prescriptions, what ends up happening is that you'll be penalized 1% per month or 12% per year of the national average. 

That sum  is about $35 currently when you do sign up for the rest of your life, that could be a pretty hefty sum, so our guidance around this issue is:  if you are pretty healthy and you don't take any medications, then a lot of times you can take a look at a Medicare Advantage plan that includes prescriptions or just pick up a very inexpensive drug plan so you'll avoid those permanent lifetime penalties. 

The exception to that is if you have VA care or Tricare champ VA and it includes prescription coverage, that is considered valid by Medicare standards. You may not have to pick up a separate prescription plan especially if you have drug coverage.