Stages of Medicare Part D Prescription Drug Payments

Stages Drug Costs Member Pays Plan Pays
Stage 1
Deductible
$0 – $400 $400 $0
Stage 2
Initial Coverage
$401 – $3,700 $825.00 $2,475.00 on average
Stage 3
Coverage Gap
$3,700 – $7,425.00 Up to $3,725.00 approximately $0
Stage 4
Catastrophic Coverage
Greater than $7,425.00 5% 95%

Please Note – This does not include premium costs. The most you will have to pay out-of pocket between $0 and $7,425.00 of the total costs of the medications you take is $400+$825.00+$3,725.00 = $4,950.