Which component of Medicare provides coverage for prescription drugs?

Medicare Part D is specifically designated for providing coverage for prescription drugs. This component was established to ensure that Medicare beneficiaries have access to necessary medications at a lower cost. It allows individuals to enroll in private insurance plans that offer varying levels of drug coverage.

Part D plans typically include a formulary, which is a list of covered drugs, and they may vary in premiums, copayments, and coverage rules. Beneficiaries are not required to enroll in Part D, but choosing to do so can significantly help manage out-of-pocket expenses for medications.

The other components of Medicare serve different purposes: Part A covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care; Part B primarily covers outpatient services, such as physician visits and preventive services; and Part C, also known as Medicare Advantage, combines coverage from Parts A and B and may include additional benefits but does not explicitly cover prescription drugs unless the plan includes Part D. Therefore, Part D is the only component that specifically addresses prescription drug coverage.