Prescription Drug Plan

Updated: 29 February 2024

What Does Prescription Drug Plan Mean?

A prescription drug plan is an insurance plan that provides coverage for the cost of prescription drugs. These policies are often used as a supplement to standard health insurance policies.

Insuranceopedia Explains Prescription Drug Plan

Prescription drugs can amount to a significant portion of a person’s health expenses. While a health insurance policy might cover prescription drugs, it might not cover the full amount. And a policyholder who needs many of them might go over their policy limit. Unless they also have a prescription drug plan, they will need to pay the excess costs themselves.

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