Stages of Medicare Part D Prescription Drug Payments (2023)

Stages Drug Costs Member Pays Plan Pays
Stage 1
Deductible		 $0 – $505 $505 $0
Stage 2
Initial Coverage		 $505 – $4,460.00 $988.75 $2,966.25 on average
Stage 3
Coverage Gap		 $4,460.00 – $7,400.00 Up to $2,940.00 approximately $0
Stage 4
Catastrophic Coverage		 Greater than $7,400.00 5% 95%

Please Note – This does not include premium costs. The most you will have to pay out-of-pocket between $0 and $7,400.00 of the total costs of the medications you take is $505+$988.75+$2,940.00 = $4,433.75.