Medicare Part D: Prescription Drug Costs
Because your prescriptions should never be a mystery.
Medicare prescription drug coverage—also called Part D—helps pay for the cost of your medications.
Every Part D plan has three main coverage phases:
- Deductible phase
- Initial coverage phase
- Catastrophic coverage phase
Let’s walk through how each one works.
1. Annual deductible
When your plan year begins, you start by paying toward your deductible (if your plan has one).
During this phase, you usually pay 100% of your prescription costs until you meet your deductible.
2. Initial coverage
After you’ve met your deductible, your initial coverage kicks in.
You and your plan now share the cost of your prescriptions.
You’ll keep paying your share until your total out-of-pocket spending—including your deductible—reaches $2,100 for the year.
3. Catastrophic coverage
Once your out-of-pocket costs reach the $2,100 annual limit, you enter catastrophic coverage.
Despite the name, this phase is a good thing—your Part D plan now pays 100% of your covered prescription drug costs for the rest of the year.
Helpful tip
Review your prescription list and plan details every year.
Plans can change which drugs they cover and how much they cost—so it’s worth checking that your plan still fits your needs.
Monthly Payment Option
If your prescription costs are high, you can spread them out with the Medicare Prescription Payment Plan.
This program is free and lets you pay your out-of-pocket drug costs in monthly installments over the course of the year.
You can opt in before the plan year starts or anytime during your coverage.
Keep Exploring
Want a deeper look at how prescription coverage works and how to find the right plan for you?
👉 Read the blog: Medicare Part D, Made Simple: Your Guide to Stand-Alone Prescription Drug Plans (PDPs)
Need a refresher on what Part D covers and how each phase works?
👉 Read the explainer: Medicare Part D: Prescription Drug Coverage
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We work with multiple Medicare plan carriers including:
- Aetna Inc.
- Devoted Health, Inc.
- Humana Inc.
- Mutual of Omaha Insurance Company
Enrollment in a plan may be limited to certain times of the year unless you qualify for a Special Enrollment Period or you are in your Medicare Initial Enrollment Period. Enrollment depends on plan’s contract renewal with Medicare.
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Medicare Advantage and Part D plans are insured by a Medicare Advantage HMO, PPO and PFFS organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment depends on plan’s contract renewal with Medicare.
We do not offer every plan available in your area. Currently we represent 4 organizations which offer 1056 products in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.
Not all carriers offer these benefits. Plans vary by region and state. Limitations and exclusions may apply.
Every year, Medicare evaluates Medicare Advantage and Part D plans based on a 5-star rating system.
Estimated annual costs are based on the usage you provided + yearly premiums. Medicare Advantage and Medicare Supplement plan calculations include the standard Part B premium + any Part B premium reductions. Actual annual costs depend on your usage, along with your Part B premium and the date you enroll.
Medicare Supplement insurance is generally available to individuals age 65 and older enrolled in Medicare Parts A and B. Availability for beneficiaries under age 65 who qualify for Medicare due to disability or End Stage Renal Disease varies by state. Benefits, eligibility, and premiums may vary by state.
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