Prescription drug plan can be part of your medical plan or a stand-alone plan. A stand-alone plan means that the policy is separate than that of the medical insurance. The policy holder will make a payment for premium that is specific to the drug plan.

In general prescription drug plans have copayments or coinsurance that must be paid. At times the out of pocket expense is determined by the actual drug and its level within the drug formulary of your health plan. A drug formulary is a list of prescription drugs, both generic and brand name, that are preferred by your health plan. Your health plan may only pay for medications that are on this "preferred" list.