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States participating in the Centers for Medicare & Medicaid Services (CMS) capitated Financial Alignment Demonstration covering Medicare-Medicaid enrollees have questions about how the Medicare Part D prescription drug benefit works and how it will be incorporated into the capitated financial alignment demonstrations. This technical assistance brief provides some basic information for states on Part D, including how beneficiaries are enrolled in Part D, how Part D drugs are paid for, what drugs are and are not covered in Part D, how drug utilization is managed in Part D, and how the Part D Medication Therapy Management Program works. The brief focuses on what states need to know about Part D in the context of the Financial Alignment Demonstrations, and is not intended to provide a comprehensive overview of Part D.