Here is important information you need to know about prescription drug plans:

• 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 $545 in 2024. You will pay a discounted price for your medications until you have satisfied the deductible. After that, you begin the initial coverage phase.

• Initial Coverage — During the initial coverage phase, 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 copay amount for which you are responsible. It is typically separated by generic drugs, preferred name brands, even more specialized medications, etc. In 2024, the initial coverage phase cap is $5,030. After you and the insurance company together have paid this amount, then you enter the coverage gap.

• The Coverage Gap – During the coverage gap, you will pay no more than 25% for name brand medications and 25% for generic medications. Once your out-of-pocket spending in 2024 reaches $8000 (including certain payments made by other people or entities--such as Medicare--on your behalf), you enter the Catastrophic Coverage phase.

• Catastrophic Coverage – If you should spend past the coverage gap, then you'll pay nothing for your covered Part D drugs for the rest of the calendar year.