Medicare Part D Plans in Arizona

We found the 28 best Medicare Part D Plans in Arizona for 2023.

We also ranked the best Medicare Advantage plans with Part D in Arizona for 2023.

The Four Phases of Every Arizona Medicare Part D Plan

Part D prescription drug plans help Arizona's Medicare beneficiaries pay for their prescriptions. If you're new to Medicare, you may not be familiar with how Medicare Part D out-of-pocket costsOut-of-Pocket Costs for Medicare are the remaining costs that are not covered by the beneficiary's health insurance plan. These costs can come from the beneficiary's monthly premiums, deductibles, coinsurance, and copayments. work. So, let's start with the four cost-sharing phases.

The Deductible is the First Phase

Prior to a plan paying any of your prescription costs, you are required to pay the annual deductible. So, if you enroll in a 2023 plan with a $400 deductible, you'll spend $400 out-of-pocket before coverage begins. Most Medicare Part D plans have a deductible, but some plans exclude Tier 1 (generics), offering immediate coverage on low-cost medications.

NOTE: $505 is the maximum deductible a plan can have in 2023.

The Initial Coverage Limit is the Second Phase

The 2023 Initial Coverage LimitOnce you have met your yearly deductible, you will pay a copayment or coinsurance for each covered drug until you reach the initial coverage limit. You will then enter your plan’s coverage gap (aka, “donut... (ICL) is $4,660. The ICL phase is when your Part D plan begins to pay the bulk of the costs. If your prescription costs exceed $4,660, you will enter the Coverage GapA period of time in which you pay higher cost-sharing for prescription drugs until you spend enough to qualify for catastrophic coverage. phase (aka, "donut hole").

The Third Phase is a Coverage Gap

After your gross drug costs have reached $4,660, you will enter the Coverage Gap phase. This is where you will pay 25% of your medication's retail cost. While the price of generic drugsA generic drug is a prescription medication that has the same active ingredient formula as a brand-name drug. Generic drugs usually cost less than brand-name drugs. might not be much different, what you pay for brand-name drugs will be higher (because you're paying 25% of the full price). This will continue until you reach $7,400 in True Out Of Pocket Costs (TrOOP).

Some plans offer additional gap coverage, so look for it on the plan information pages.

The Fourth Phase is Catastrophic Coverage

All Part D plans offer catastrophic coverage once you have paid $7,400 in true out-of-pocket costs for covered drugs. This amount includes the cost of covered drugs as well as some additional costs. In the catastrophic coverage phase, your copaysA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service. or coinsuranceCoinsurance is a percentage of the total you are required to pay for a medical service.  will be significantly lower for the remainder of the year.

The out-of-pocket costs that help you get catastrophic coverage include:

1. Your plan's deductible;
2. What you paid during the initial coverage limit period;
3. Most of the full cost of brand-name drugs (and the manufacturer’s discount) purchased in the coverage gap;
4. The amount paid by others, including family members, most charities, and other persons on your behalf; and
5. The amount paid by State Pharmaceutical Assistance Programs (SPAPs), AIDS Drug Assistance Programs, and the Indian Health Service.

Choose Your Part D Plan with Care

Choose from the available Part D Medicare plans carefully, and don't settle on a Part D plan until you know that your most expensive medications are covered at a price you can afford. This information is available in the plan's formularyA formulary is a list of prescription drugs covered by a prescription drug plan or another insurance plan offering prescription drug benefits. Medications not on a plan's formulary are generally not covered.. You'll find links to the formulary information, pharmacy information, and the customer service phone number on each PDP page (above).

VITAL: Identifying the best Medicare Part D Plans requires research. What works the best for you is all about your regular prescriptions (if any), your health, and what you can afford.

Did you Know Most Medicare Advantage Plans Include Prescription Benefits?

There's more than one way to get prescription drug coverage with your Medicare benefits. The first way is by enrolling in one of the Medicare prescription drug plansMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each... available in Arizona. The second way is to get prescription coverage through one of the many Arizona Medicare Advantage Plans that include Part D benefits. Most Medicare Advantage plansMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B). available in Arizona include Part D as an additional benefit.

Medicare Part D and Medicare Supplements Work Together

With Original MedicareOriginal Medicare is private fee-for-service health insurance for people on Medicare. It has two parts. Part A is hospital coverage. Part B is medical coverage. you are responsible for paying about 20 percent of all hospital and medical bills. Without additional protection, even a brief hospital stay can cost you thousands out-of-pocket. That's why we maintain a complete directory of Arizona Medicare Supplement Insurance, also known as Medigap. We make it easy to find the best rates on the coverage you want. All Medicare supplementsMedicare Supplements are additional insurance policies that Medicare beneficiaries can purchase to cover the gaps in their Original Medicare (Medicare Part A and Medicare Part B) health insurance coverage. sold in Arizona plans are 100% compatible with Medicare Part D plans.

Getting Medicare Part D with Arizona Medicaid

If you meet the requirements for both Medicare and Medicaid (aka, "dual eligible" or "Medi-Medi") in Arizona, you will automatically receive a Medicare Prescription Drug Plan, as well as Extra Help from Social Security. If you qualify for Extra Help, the program will cover most of the costs of your prescriptions. Even if you qualify, the dual eligible option may not suit your needs. In this case, enroll in the prescription drug plan of your choice. If you receive MedicaidMedicaid is a public health insurance program that provides health care coverage to low-income families and individuals in the United States. now, call your local Medicaid office for assistance with your dual eligible benefits.

Citations & References

1. Medicare.gov, "Drug coverage (part D)", Last Accessed September 21, 2022
2. Benefits.gov, "Medicare Prescription Drug Plans", Last Accessed September 1, 2022
3. Medicare.gov, "Costs for Medicare drug coverage", Last Accessed September 3, 2022
4. Medicare.gov, "Are prescription drugs covered in Medicare Advantage plans?", Last Accessed June 5, 2022
5. SSA.gov, "Extra Help with Medicare Prescription Drug Plan Costs", Last Accessed June 1, 2022
6. CMS.gov, "Landscape Source Files", Last Accessed October 18, 2022
7. CMS.gov, "Medicare Part C & D Performance", Last Accessed October 15, 2022

This Medicare Part D plan state information page was last updated on November 4, 2022.