Matej Mikulic
Research expert covering health, pharma & medtech
Prescription drug plans in the U.S.- Statistics and Facts
Prescription drug plans in the U.S., more commonly referred to as Medicare Part D plans or Prescription Drug Plans (PDPs), are insurance plans that help Medicare beneficiaries pay for outpatient prescription medications. These plans are available to anyone who is enrolled in Medicare Part A and/or Part B and are offered exclusively through private insurance companies that are approved and regulated by Medicare. Medicare prescription drug coverage is optional. People can either enroll in a stand-alone Part D plan (PDP) to add drug coverage to Original Medicare or select a Medicare Advantage (Part C) plan that includes drug coverage (MA-PD). Medicare PDPs were introduced in 2006; the average monthly premium for stand-alone PDPs increased from 26 U.S. dollars in 2006 to 45 U.S. dollars in 2025.In the United States, the Medicaid drug benefit is a required fundamental component of Medicaid coverage, providing outpatient prescription medications to all categorically qualified enrollees in every state.
