Medicare Part D is a program that was organized by the federal government in 2006. Those enrolled in a Part D plan receive discounts for their prescription drugs by either joining a Prescription Drug Plan or a Medicare Advantage Plan. Here’s what you need to know about the four phases users will go through while using the Part D plan.
Phase 1: The initial deductible – The highest deductible a plan can charge in 2019 is $415.
Phase 2: Coverage – The plan provides you with co-insurance or medication co-payment.
Phase 3: The Donut Hole – Once you reach the coverage gap, an amount that varies year to year, you pay 100% of your Medication costs.
Phase 4: Catastrophic Coverage – After you spend more than $5100 for prescription medications, the cost of medications will be reduced.