Medicare Part D

Delaying Part D? The Notice That Keeps You Penalty-Free

RICHARDSON, Texas — If you're nearing 65 and still have prescription drug coverage through a job, a spouse's plan, a union, the VA or TRICARE, you may be wondering whether you need to sign up for Medicare Part D right away. The short answer: not always — but the piece of paper proving your current coverage is "creditable" is what stands between you and a lifetime penalty later.

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2027 DRUG LIST ALERT

Will your prescriptions still be covered in 2027?

Part D plans rewrite their drug lists every year — tiers move, pharmacies change, drugs drop off. One call checks your exact medications against the 2027 plans in your area.

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Prescription bottles on table in Richardson — illustrating this Medicare guide — Photo: LOGAN WEAVER | @LGNWVR Photo by LOGAN WEAVER | @LGNWVR on Unsplash

By MyMedicarePlans Editorial Desk · Medicare Education✓ Verified Team

Published 2026-09-23·Updated 2026-10-07·8 min read·✓ Reviewed·● Richardson, TX

Key takeaways

"Creditable" drug coverage means your current plan is expected to pay, on average, at least as much as standard Medicare Part D would.
If your coverage is creditable, you can delay Part D without a late-enrollment penalty and sign up later during a Special Enrollment Period.
Your plan should send you a Notice of Creditable Coverage every year before October 15 — keep it, because you may need to show it to Medicare.
VA and active-duty TRICARE drug coverage generally count as creditable, but always confirm in writing with your plan administrator.

That single word — creditable — is one of the most important terms in Medicare, and one of the most misunderstood.

What "creditable" actually means

Medicare uses the word creditable to describe drug coverage that is at least as good as a standard Part D plan. In plain terms, your current insurance is expected to pay about as much for prescriptions, on average, as Medicare would.

If your coverage meets that bar, Medicare treats the time you spent on it as if you had been enrolled in Part D. That matters because Part D has a late-enrollment penalty that gets added to your monthly premium — for life — if you go 63 days or more without creditable drug coverage after you first become eligible for Medicare.

The notice that proves it

Every year, plans that offer prescription drug coverage are required to tell members whether that coverage is creditable. This is called the Notice of Creditable Coverage, and it usually arrives before October 15 — the start of Medicare's Annual Enrollment Period.

You may get it in the mail, by email, or tucked into an open-enrollment packet from HR. It's easy to toss out by mistake. Don't. Keep it somewhere safe with your other Medicare paperwork. If you later join a Part D plan, Medicare may ask you to show when your prior coverage started and ended, and this notice is the cleanest proof you have.

If you can't find yours, call your benefits office, your union trust, or your plan's member services line and ask for a copy in writing.

Employer, union, VA and TRICARE — the common situations

Still working past 65? Many large-employer health plans include creditable drug coverage, but not all do. Ask HR directly, in writing: "Is our prescription drug coverage creditable for Medicare Part D purposes?"

Retiree coverage from a former employer or union? These plans vary widely. Some are creditable; some aren't. Check the notice, and check again every year — plans can change.

VA prescription benefits? Drug coverage through the Department of Veterans Affairs is generally considered creditable. You can keep using the VA and skip Part D, though some veterans still enroll in Part D to get medications at community pharmacies the VA doesn't use.

TRICARE? TRICARE's pharmacy benefit is generally creditable, including for TRICARE For Life. If you're eligible for TRICARE For Life, you do need Medicare Parts A and B, but you typically don't need a separate Part D plan.

Indian Health Service, PACE, or Medicaid drug help? These can also be creditable — verify with the program.

Delaying Part D the right way

If your coverage is creditable and you decide to wait, here's how to protect yourself:

1. Save every Notice of Creditable Coverage you receive. 2. Know your Special Enrollment Period. When you lose creditable coverage — for example, when you retire — you generally have 63 days to join a Part D plan without penalty. 3. Sign up on time. Waiting past that window is what triggers the late-enrollment penalty.

Richardson is in Dallas County, where there are many stand-alone Part D plans and Medicare Advantage plans that include drug coverage to choose from when you're ready. You can compare them at medicare.gov using the Plan Finder tool.

A few 2027 numbers worth knowing

Even if you're not enrolling in Part D right now, it helps to know what the program looks like when you do join:

Part D has a new $2,100 annual out-of-pocket cap on covered drugs in 2026.
The maximum Part D deductible is $615.
The old "donut hole" coverage gap was eliminated in 2025; the benefit now has three phases.
The Medicare Prescription Payment Plan lets you spread your drug costs across the year in monthly installments if that helps your budget.
Higher-income enrollees pay an IRMAA surcharge; for a single filer in 2026, that starts above $109,000 in income.

By the numbers

Medicare Part B premium, 2006–2026

The standard monthly Part B premium has climbed from $88.50 in 2006 to $202.90 in 2026. Hover any point for that year’s premium.

Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.

By the numbers

How people get Medicare in Dallas County

55% are on Medicare Advantage
(MA penetration in Dallas County)

55%

45%

Medicare Advantage Medicare Supplement (Medigap) Original Medicare only

U.S. average

MA penetration from CMS enrollment data; Medigap share is an estimate. U.S. average is about 54% Medicare Advantage. These are area-level figures, not plan-specific.

Key dates

Medicare enrollment periods at a glance

Around your 65thInitial Enrollment PeriodA 7-month window around the month you turn 65 — your first chance to sign up.
October 15 – December 7Annual Enrollment PeriodAnyone with Medicare can join, switch, or drop a Medicare Advantage or Part D plan.
January 1 – March 31Medicare Advantage Open EnrollmentIf you're already in a Medicare Advantage plan, you can make one change.
January 1 – March 31General Enrollment PeriodFor people who missed their first chance to sign up for Part B.
VariesSpecial Enrollment PeriodTriggered by life events like moving or losing other coverage.

Dates are set by Medicare and apply nationwide. Confirm your personal windows at Medicare.gov or 1-800-MEDICARE.

Try it

How the 2026 Part D drug cap works

Slide to your estimated yearly prescription costs and see how the new $2,100 out-of-pocket cap protects you. This illustrates the standard Part D benefit; your plan may structure costs differently.

Your total yearly drug costs$3,000

$2,100 cap

$1,211estimated out-of-pocket

$0saved by the cap

Once your out-of-pocket spending on covered drugs reaches $2,100, you pay nothing more for the rest of 2026. Confirm details at Medicare.gov.

Explore

When can you enroll? An interactive year

JFMAMJJASOND

October 15 – December 7 — anyone with Medicare can join, switch, or drop a Medicare Advantage or Part D plan. Changes take effect January 1.

Enrollment windows are federal and the same nationwide. Confirm your personal dates at Medicare.gov or 1-800-MEDICARE.

Good to know

Frequently asked questions

How do I know if my employer's drug coverage is creditable?

Look for the Notice of Creditable Coverage your plan sends each year, usually before October 15. If you can't find it, ask your HR or benefits office in writing. They are required to tell you.

What happens if I lose creditable coverage — say, when I retire?

You get a Special Enrollment Period, generally 63 days, to sign up for a Part D plan or a Medicare Advantage plan with drug coverage without a late-enrollment penalty. Don't wait past that window.

I'm a veteran using the VA pharmacy. Do I also need Part D?

Usually no — VA drug coverage is considered creditable. Some veterans still choose to add a Part D plan for flexibility at retail pharmacies, but it isn't required to avoid the penalty.

What is the Part D late-enrollment penalty?

It's a permanent amount added to your Part D premium if you went 63 days or more without creditable drug coverage after becoming eligible for Medicare. The longer the gap, the higher the penalty — and it stays with you as long as you have Part D. ## Where to get help you can trust For personalized answers, go straight to the sources that don't sell anything: **Medicare.gov** — the official site to compare Part D and Medicare Advantage plans. **1-800-MEDICARE (1-800-633-4227)** — available 24/7. **Texas SHIP (Health Information, Counseling and Advocacy Program)** — free, unbiased Medicare counseling for Texans, including folks here in Richardson. **Your plan's member services line** — for a written copy of your Notice of Creditable Coverage. Hold on to that notice. It's a small piece of paper, but it's the one that proves you did things right.

Sources & further reading

CMS — Medicare Part D program rules (medicare.gov)
CMS — Medicare enrollment periods (medicare.gov)

For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.

Also for Richardson

Medicare Advantage in Richardson Medicare Supplement in Richardson Medicare 2026 in Texas

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This page was last updated: October 7, 2026.