Part D, Prescription Drug Coverage

More and more prescription drug costs are becoming a significant part of older adults healthcare spending.  The average 65-79 year old spends $456 per year on prescription drugs and the numbers go up to $700 per year for those with chronic conditions like Diabetes

Part D/Prescription Drug Coverage:

  • Provided for by Private Insurance Companies

  • Phase 1 You pay the Deductable

  • Phase 2 Initial Coverage ($4020 Prescription Cost) out of pocket initial coverange with copay

  • Phase 3 Coverage Gap, you pay 25% in Gap

  • Phase 4 Catastrophic Coverage, you pay a small copay until you get to $6350 out of pocket .

  • Copays, Deductable and Formularies vary by carrier

The "Donut Hole"


You pay 100%

Coverage Gap


Initial Coverage

You pay Copay

Catastrophic Coverage You

pay  Small Copay


Total Cost 


Out of Pocket

Initial Coverage

You pay Copay