Here is important information you need to know about owning a prescription drug plan:

• 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, and etc. In 2025, the initial coverage cap is up to $2000 . After you and the insurance company together have paid this amount, then you enter the Catastrophic Coverage.

• The Coverage Gap – Was taken away in 2025.

• Catastrophic Coverage – You enter this stage after you reach $2000 for covered drugs. You pay $0 for covered drugs during this stage.