Now that you are newly retired, and over 65 years of age, you are looking at what Medicare can offer for health care.  You will soon realize that it does not quite cover what you thought it would. There are two options to help out with the areas that are not covered or have weak coverage.

The first is called a Medicare Supplement or Medigap policy.  The Medigap policy is designed to help out with the costs that Medicare does not cover, including your drug cost.  If you have both Medicare and a Medigap policy, then, between the two, all of your medical costs will be covered. If you choose this type of coverage, you will still have to pay for your Medicare Part B and a separate premium to the insurance company.

The second is called Medicare Part D.  There are two types of these policies: Prescription Drug Plan (PDP) which covers your prescriptions only, and the Medicare Advantage plan (MA) is also available.  The Medicare Advantage plans come from companies that have contracted with Medicare to insure people with Medicare.  They help pay for the portion of expenses that Medicare does not cover, including prescription coverage. They are not part of the original Medicare Plan but are subject to the deductibles you would pay with Medicare.  Premiums are quite inexpensive, and with some of the policies, there is no premium except for what you would pay for Medicare.  

All of these plans have their own merits.  Contact your insurance agent to see what companies are available in your area and to help decide which coverage is best for you.