How Much Does Medicare Part D Cost?

Medicare Part D covers a portion of your prescription drug costs.

Since many other parts of Medicare (Part A, B and C) do not offer great coverage for prescription drugs, Part D has become a popular option for seniors. Below we take a look at the costs, deductibles and more for Medicare Part D.

How Much Does Medicare Part D Cost?

The current average monthly premium for Medicare Part D is about $33. This rate will vary depending on the plan you choose and what state you live in.

How Much Are Deductibles Under Medicare Part D?

Part D deductible plans range from $0 to $415. Do your homework to factor yearly costs with the drugs that you will need to take before selecting your premium plan.

How Much Are Copayments and Coinsurance?

A coinsurance is a percentage of the price of your prescription. A copayment is a fixed dollar amount for your prescription.

You will typically have to pay coinsurance on drugs in higher tiers, with lower tier drugs sticking with a copay pricing model.

Keep in mind, drug pricing will be designed to encourage you to select lower cost drugs.

Will Medicare Part D Stop Paying For My Drug Costs?

Unfortunately, yes. Called the coverage gap or donut hole, you will be responsible for 25% of all your drug costs when you reach a limit of about $4,000 in yearly drug costs.

However, once you’ve paid over $6,350 for out-of-pocket drugs costs, you leave the gap/donut hole coverage and enter catastrophic coverage.

During this period you will pay significantly lower copayments or coinsurance costs.

That’s the basics on how much does Medicare Part D cost. Check out more info on Medicare costs here…

More on Medicare Costs

This is part of our ongoing series: How much does Medicare cost?

Read the next article in the series: How much does Medicare Part C cost?