Prescription Drug Plan

What Does Prescription Drug Plan Mean?

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

Insuranceopedia Explains Prescription Drug Plan

Prescription drugs can account for a significant portion of a person’s healthcare expenses. While a health insurance policy may cover prescription drugs, it may not cover the full cost. A policyholder who requires numerous medications could exceed their policy’s coverage limits. Without a prescription drug plan, they would need to pay any excess costs out of pocket.