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Part D Alternative Plans

There are two types of Alternative Part D plans--basic alternative and enhanced alternative. Basic alternative plans must be actuarially equivalent to the defined standard plans, but are allowed to have different deductible amounts and cost-sharing structures. On the other hand, the actuarial value of enhanced alternative plans must exceed the value of a defined standard plan. There are some general requirements of both.

Alternative Part D plans must use the defined standard plan as a "fixed point of comparison" in creating the plan structure. This means the cost-structure of alternative plans must be either actuarially equivalent to, or provide more value than, the defined standard plan.

This publication explains these plans in more detail.

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