There are up to four phases of cost-sharing for people enrolled in a Medicare Part D prescription drug plan.
Our chart explains what people with Medicare will pay in each phase, up to a total of $7,400 out-of-pocket before someone reaches the Catastrophic Benefits Period in 2023.
Learn more about what Medicare Part D for your prescription drugs might cost in 2023.
What will people with Medicare Part D pay for their prescription drug plans in 2023? The Centers for Medicare & Medicaid Services (CMS) anticipates that the average premium for Part D plans will decrease slightly to $31.50 per month in the coming year.
In addition, Medicare beneficiaries can expect to pay more during the various coverage phases.
This cost-sharing chart outlines what people with Medicare will pay for prescription coverage in each phase, including:
- A deductible of up to $505 (varies by plan)
- 25% of the costs of their prescription drugs in the Initial Coverage Period (or up to $1,165 if in a plan with no deductible)
- Up to a total of $7,400 out-of-pocket before the beneficiary reaches the Catastrophic Benefits Period. Once they hit this threshold, the Medicare beneficiary will pay either 5% coinsurance or $4.15 copay for generic medications, and $10.35 for brand-name drugs.
Note that changes to Medicare prescription costs resulting from the Inflation Reduction Act will be gradually phased in over the next few years.