A person’s drug costs can be evenly spread over the year. Medicare Part D plans are required to provide plan mem- bers an option allowing people to spread their monthly prescription drug costs evenly over the year.
Stage 3: Catastrophic Coverage
For example, if a person purchas- es an expensive medication in January 2025 and the cost exceeds the $2,000 out-of-pocket
After your yearly out-of-pocket costs reach $2,000, the plan will pay all of your Medicare covered Part D drug costs for the rest of the year.
threshold, the person could spread the $2,000 cost evenly over the entire year to lessen the impact of a single $2,000 payment with $167 monthly payments. The Three Stages of your 2025 Medicare Part D Plan Based on the 2025 CMS defined standard Medicare Part D Plan
120%
100%
You pay 100% of retail drug cost before meeting $590 Initial Deductible
You pay 25% of retail drug cost before meeting $2,000 Initial Coverage Limit
You pay approx. 0% of retail drug price after meeting $2,000 out-of-pocket
80%
60%
limit and entering Catastrophic Coverage
40%
20%
0%
75% of Brand-name drug cost and 75% of Generic drug cost
Initial Deductible Initial Coverage Phase Catastrophic Coverage
*Reference information for the following Prescription Drug Plan section can be found in the following links:
https://q1medicare.com https://q1medicare.com
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