Key takeaways

Medicare Part B covers outpatient medical services, some outpatient prescription drugs, and medications like some chemotherapy drugs, vaccines, and insulin for pumps, typically administered in a doctor’s office or hospital setting.
The standard Medicare Part B premium for 2023 is $164.90, which may increase based on income, with a deductible of $226 and typically 20% coinsurance after the deductible is met.
Medicare Part D is designed to cover FDA-approved prescription drugs that are regularly taken at home, with a monthly premium averaging $32.74, and it does not cover drugs that are covered under Medicare Part A or B.
Enrolling in both Medicare Part B and Part D can provide comprehensive coverage for both outpatient medical services and regular prescription medications, with Medicare Advantage plans (Part C) offering an alternative that includes Parts A, B, and usually D coverage.

Most people who are familiar with Medicare think of Part D when asked about prescription drug coverage. But did you know that Medicare Part B covers some medications, too? If you’ve recently been diagnosed with a health condition, you may be wondering which part of Medicare will help you get the most affordable treatment.

What is Medicare Part B?

This part of Medicare covers outpatient medical services, durable medical equipment, such as insulin pumps, and preventive healthcare services.

Medicare Part B covers:

Doctor’s visits, including preventive services and annual physical exams
Clinical research trials
Ambulance services
Durable medical equipment
Outpatient mental health services
Some (but not most) outpatient prescription drugs
Some vaccinations

Does Medicare Part B cover prescriptions?

Medicare Part B does cover some prescriptions. Insulin used in external insulin pumps (if medically necessary), some drugs prescribed during dialysis are covered, and some chemotherapy drugs and outpatient oral cancer drugs.

Other drugs covered by Part B include those administered by a healthcare professional in a doctor’s office or another medical facility. These include vaccines and other injectable drugs and drugs that are administered through a feeding tube.

List of drugs covered by Medicare Part B

Certain drugs are covered by Medicare Part B under limited conditions, usually in a doctor’s office or hospital setting. Medicare Part B drugs include:

Drugs used in conjunction with durable medical equipment such as infusion pumps or nebulizers
Antigens that are prepared by your doctor
Injectable osteoporosis drugs
Erythropoiesis-stimulating agents for those with end-stage renal disease
Blood clotting factors
Injectable and infused drugs
Oral end-stage renal disease (ESRD) drugs including Parsabiv and Sensipar
Parenteral (intravenous) and enteral (tube) nutrients
Intravenous immune globulin (IVIG)
Vaccinations (flu, pneumococcal, Hepatitis B, and others)
Immunosuppressant drugs related to organ transplant
Oral cancer drugs
Oral anti-nausea drugs
Self-administered drugs in a hospital setting

How much does Medicare Part B cost?

The standard Medicare Part B premium for 2024 is $174.70, but this premium may increase if your income falls above a certain level. The Social Security Administration uses the income reported on your most recent federal tax return to determine whether you will be responsible for paying any additional premium during your enrollment. Premiums may increase depending on income, however, there are no income limits to being able to receive Medicare benefits.

What is the difference between Part B and Part D?

Although both cover medications, there are a few key differences between drug coverage under Medicare Part B and Medicare Part D drug coverage. The medications covered under Medicare Part B are drugs that would typically be administered by a healthcare provider at a hospital or doctor’s office. Medicare Part D coverage provides additional drug coverage to lower out-of-pocket costs on prescription medications you take regularly at home.

Medicare prescription drug coverage: Part B vs. Part D
	Medicare Part B	Medicare Part D
Eligibility	If you are eligible to enroll in Medicare Part A (65+ years old, on social security disability for 2 years, end-stage renal disease, or ALS), you are eligible to enroll in Part B.	You must be enrolled in Medicare Part A and/or Part B to enroll in Medicare Part D.
Enrollment	Initial enrollment period begins 3 months before your 65th birthday and ends 3 months after the month of your birthday (for a total period of 7 months). If you miss the initial enrollment period, you may have to pay a monthly late enrollment penalty for the entire duration of time that you are enrolled in Part B, unless you have low income or creditable coverage. Thereafter, the open enrollment period is between Jan. 1-March 31 annually.	Initial enrollment period begins 3 months before your 65th birthday and ends 3 months after the month of your birthday (for a total period of 7 months). If you miss the initial enrollment period, you may have to pay a monthly late enrollment penalty for the entire duration of time that you are enrolled in Part D, unless you have low income or creditable coverage. Thereafter, the open enrollment period is between Oct. 15-Dec. 7 annually.
Enrollment	Special Enrollment Periods also apply
Costs*	Monthly premium: $174.70 in 2024, which may increase based on income Deductible: $240 in 2024 Coinsurance: After the deductible is met, you will typically pay 20% of Medicare-approved medical costs	Monthly average premium: $55.50 in 2024, which may vary and increase based on income Deductible: $0-$545 Copays/coinsurance: Varies based on your specific plan
Covered drugs	Drugs that are given in a doctor’s office or hospital and that typically cannot be self-administered (usually via infusion or injection) Vaccinations, including the flu shot, COVID-19 vaccine, hepatitis B shots, and pneumococcal shots Some antigens, erythropoietin by injection, blood clotting factors, immunosuppressive drugs, oral cancer drugs, oral anti-nausea drugs, parenteral and enteral nutrition, intravenous immune globulin, and insulin used with insulin pumps	Medicare Part D covers FDA-approved prescription drugs that are regularly taken at home. See your plan’s formulary to find out which drugs are covered.
Other considerations	Medicare Part B generally does not cover drugs that are administered in a hospital emergency department or hospital inpatient unit.	By law, Medicare Part D cannot pay for any medications that Part A or Part B covers. The following drugs also aren’t covered by Part D: Weight-loss drugs Sexual or erectile dysfunction drugs, unless used off-label for an FDA-approved reason Cough and cold medication Non-prescription drugs Fertility drugs Hair growth drugs Drugs taken for cosmetic reasons Prescription vitamins and minerals, with the exceptions of prenatal vitamins and fluoride

*These costs are reduced or eliminated if a person is low income and enrolls in a Medicare Savings Program, or MSP (for Part B) or Extra Help (for Part D).

Bottom line: You may need Medicare Part B and Part D

You may not foresee needing the type of drugs that Medicare Part B covers; however, if you don’t enroll in Part B, you’ll also be missing out on coverage for doctor’s visits, ambulance services, and durable medical equipment.

If you think you need Medicare Part B and Part D coverage, you can consider a Medicare Advantage plan (also known as Part C) instead of Original Medicare (Part A and B). Medicare Advantage includes Part A (inpatient hospital insurance), Part B (outpatient medical insurance), and usually Part D (drug coverage). However, Medicare Advantage will change the way your Medicare is administered including networks, prior approval, and other implications.

For even more coverage with Original Medicare, consider a Medicare supplement plan like Medigap. Eligible Medicare beneficiaries can also apply for low-income subsidies like Medicare Savings Programs or Medicare Extra Help to lower prescription drug costs and other Medicare-related expenses.