Stages of Medicare Part D Prescription Drug Payments (2022)

Stages Drug Costs Member Pays Plan Pays
Stage 1
Deductible		 $0 – $480 $480 $0
Stage 2
Initial Coverage		 $481 – $4,430.00 $987.50 $2,962.50 on average
Stage 3
Coverage Gap		 $4,430.00 – $10,012.50 Up to $7,050.00 approximately $0
Stage 4
Catastrophic Coverage		 Greater than $10,012.50 5% 95%

Please Note – This does not include premium costs. The most you will have to pay out-of-pocket between $0 and $10,012.50 of the total costs of the medications you take is $480+$987.50+$7,050.00 = $8,517.50.