Many Medicare Part D Prescription Drug plans include a deductible, meaning you pay the full cost of certain medications in the deductible phase. Because of this, some of your medications may have a much higher price tag in the beginning of the year.
A deductible is the amount paid out-of-pocket by a policyholder before the insurance carrier pays any expenses on the policyholder’s behalf. In 2025, the maximum Part D prescription drug deductible is $590.
If you take a medication that applies to your plan’s prescription drug deductible, you will spend more during this phase…until you reach the deductible. And then after the deductible is met, your plan will begin to pay a portion of the cost of covered drugs on the plan’s formulary list of medications.
Once you have spent $2,000 out of your pocket (including the deductible), you will reach the Catastrophic phase of Part D and no longer have any copays for covered drugs on the plan’s formulary list of drugs.
Keep in mind that no two plans are alike. Some plans have no deductible, while others have different combinations (i.e. deductible applies to brand name drugs, but not generic drugs).
You can see more detail on this, as well as how the new $2,000 cap works, in our post titled, Medicare Part D Prescription Drug Coverage Phases.
Reference Links
www.medicare.gov
Part D Deductible
Medicare Part D Prescription Drug Coverage Phases
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