Medicare Part D helps cover the cost of prescription drugs. Here’s a breakdown of the coverage stages you need to know for 2025:
Stage 1: Deductible Stage
- If your Part D plan includes a deductible, you are responsible for paying the full cost of your covered prescriptions until the deductible amount is met.
- If your plan does not have a deductible, you will start in the Initial Coverage Stage immediately.
- Once you meet the deductible, you move to the Initial Coverage Stage.
Stage 2: Initial Coverage Stage (Up to $2,000)
- During this stage, the plan contributes its share, and you pay a copayment or coinsurance for each covered prescription.
- This stage continues until your total out-of-pocket drug costs reach $2,000 for the year.
- Once your costs reach $2,000, you progress to the Catastrophic Coverage Stage.
Stage 3: Catastrophic Coverage Stage (Through the End of the Year)
- In this stage, you benefit from a $0 copayment for each covered prescription drug, ensuring minimal costs for the remainder of the year.
Important Note: Coverage amounts may change annually on January 1. It’s essential to review your plan details each year to understand any updates.
Tip of the day! Be sure to use the plans “Preferred Pharmacies” for cost savings.
For more information or personalized assistance, contact [email protected].
