Prescription Drug Plans



Medicare Prescription Drug Plans are also known as Part D. 


Medicare creates the base structure and then private companies develop the deductibles and copays as well as create the formulary - all within guideline. 


Below is an outline of how the base structure works.  Remember that these can be enhanced and vary greatly between companies and plans.

Part D Plans tend to change quite a bit from one year to the next, so it's a good idea to reevaluate your options each year during the Annual Enrollment Period.



  • Are my medications covered in the plan's formulary?

  • Is my pharmacy in network as a preferred pharmacy?​

  • Is there a deductible?  If so, which tiers does it apply to?​

  • Am I eligible for other coverage such as Tricare, VA, or an employer group plan?

  • Does this plan participate with the Insulin Savings Program?

  • Do I qualify for Low Income Subsidy or Medicaid?  Find out more.


Understanding Part D Payment Stages

Up to $480

Deductible Stage

During this stage, if your plan has a deductible, you usually pay the full cost of your drugs up to the deductible amount.  Some plans waive this or apply it only to certain tiers. 

Once you reach the deductible amount, you pay a copayment or coinsurance in the initial coverage stage. 

Up to $4,430

Initial Coverage Stage

During this stage, the plan pays its share of the cost and you pay a copayment or coinsurance (your share of the cost) for each prescription you fill until your total drug costs reach $4,430.

Most people will remain in this stage.

Once you reach $4,430, you enter the coverage gap or "donut hole."

Up to $7,050

I'm a paragraph. Click here to add your own text and edit me. It's easy.

Coverage Gap Stage

During this stage, you receive limited coverage on certain drugs.  You'll pay 25% of the cost of brand-name drugs (plus part of the dispensing fee) and 25% of the cost of generic drugs.  This stage continues until your yearly out-of-pocket drug costs reach $7,050. 

Some people will move into this stage.

Once your yearly out-of-pocket costs reach $7,050, you move to catastrophic coverage.

Through the end of the year

Catastrophic Coverage Stage

During this stage, you pay only a small copayment or coinsurance amount for each prescription you fill.

Fewer people will reach this stage.

Have more questions about prescription drug plans? 
Click here to contact a local agent or call 720-990-1680.

Not connected with or endorsed by the United States government or the federal Medicare program.  This is a solicitation for insurance and your response may generate communication from a licensed producer/agent.