Here is some important information you need to know about owning a prescription drug plan:

• Annual Deductible — There is a deductible you must pay for a Part D plan. Your deductible may be different, or waived entirely, but the max amount you can be charged is $415 in 2019. You will pay a discounted price for your medications until you have satisfied the deductible. After that, you can begin the initial coverage.

• Initial Coverage — During initial coverage, you pay a copay for your medications based on your plan’s formulary. Each prescription drug plan separates its medications into tiers. Each tier has a copy amount for which you are responsible. They are typically separated by generic drugs, preferred name brands, even more specialized medications, etc. In 2019, the initial coverage cap is $3,820. Once you and the insurance company together have paid this amount, then you enter the coverage gap.

• The Coverage Gap – During the coverage gap, you will still generally have significant discounts for generic medications. Typically, you will pay 25% for name brand medications and 37% for generics. Your gap spending will continue until you have paid $5100 out of your own pocket in 2019.

• Catastrophic Coverage – If you spend past the coverage gap, your plan will begin to pay 95% of the costs of your formulary medications for the rest of the year.