What You Need to Know About Medicare

While plans have to offer prescription drug coverage at least as good as that standard benefit, many have designed their offerings differently, generally offering more benefits.

There are two ways to access prescription drug benefits paid for by Medicare: by enrolling in either a stand-alone prescription drug plan or a Medicare Advantage plan.

1) Stand-alone Prescription Drug Plans (or PDP) -- These are Medicare-approved plans that provide coverage only for prescription drugs. Upon enrolling in a PDP, you will receive your Medicare prescription drug benefits and pay a separate Part D premium to the plan. (The plan also receives funding from the government.) You then combine this coverage with your original Medicare benefits and any other health care coverage.

2) Medicare Advantage Prescription Drug Plans (or MA-PDP) -- In addition to your medical and hospital coverage, these provide you with prescription drugs (Part D). Some plans will charge you a premium, others won't.