Annual Deductible

There is a deductible you must pay for a Part D plan. Your deductible may be different, or waived entirely, but the max amount you can be charged is $590 in 2025. You will pay a discounted price for your medications until you have satisfied the deductible. After that, you begin initial coverage.

Initial Coverage

During initial coverage, you pay a copay for your medications based on your plan’s formulary. Each prescription drug plan separates its medications into tiers. Each tier has a copy amount for which you are responsible. It is typically separated by generic drugs, preferred name brands, even more specialized medications, etc.

Catastrophic Coverage

If you should spend past $2,000 (total out of pocket), your plan will begin to pay 100% of the costs of your formulary medications for the rest of the year