Medicare Part D Calculator

Medicare Part D Cost Guide

Starting in 2025, the Inflation Reduction Act eliminated the coverage gap (donut hole) and capped annual out-of-pocket prescription drug costs at $2,000.

Statutory Cost Structure

Deductible Phase = 100% up to $590
Initial Coverage = 25% Coinsurance
Out-Of-Pocket Cap = Maximum $2,000 per year
Catastrophic Phase = 100% Plan/Manufacturer Covered ($0 OOP)

Frequently Asked Questions

What is the Medicare Prescription Payment Plan?

The program allows enrollees to spread their out-of-pocket prescription drug costs evenly across remaining calendar months rather than paying all upfront.

Do monthly plan premiums count toward the $2,000 cap?

No. The $2,000 annual maximum applies strictly to covered Part D copayments, coinsurance, and deductibles, not monthly premiums or IRMAA surcharges.