Hi, you may be wondering, what is a Part D Deductible? The Medicare Part D deductible is the amount that a person must pay out-of-pocket before their Medicare Part D prescription drug plan will pay the medication costs. Centers for Medicare and Medicaid Services (CMS) sets the Part D deductible, which can vary from year to year.

In 2025, most Medicare Part D plan have a deductible that is $590. So, a person must pay the first $590 of the cost of their medications out of their own pocket, then their Part D plan pays for their medications. Some Medicare Part D plans have a lower deductible, or no deductible at all, but, have higher premiums or other out-of-pocket costs.

Importantly, you should consider the Part D deductible when choosing a Medicare Part D plan because the deductible influence the overall cost of their prescription drug coverage. Also, it is important the Part D deductible only applies to the cost of medications and not to other out-of-pocket costs like co-payments and coinsurance.

So, the Medicare Part D deductible is the amount a person must pay out-of-pocket before their Medicare Part D prescription drug plan will pay the cost of their medications. he Centers for Medicare and Medicaid Services sets the Part D deductible, which varies from year to year. Some Medicare Part D plans have a lower deductible, or no deductible at all. However, these plans may have higher premiums or other out-of-pocket costs. Importantly, people should consider the Part D deductible when selecting a Medicare Part D plan because it can influence the overall cost of their prescription drug coverage.