Key Takeaways

  • The Part D coverage gap (or "donut hole") officially closed in 2020, but that doesn't mean people won't pay anything once they pass the Initial Coverage Period spending threshold.

  • See what your clients, the drug plans, and government will pay in each spending phase of Part D.

  • Our infographic explains the different phases of coverage in 2022.

Medicare beneficiaries will see a Part D deductible up to $480 in 2022, followed by an Initial Coverage Period in which they will be responsible for 25% of costs up until they reach the threshold of $4,130 spent on prescription medications.

The Part D coverage gap (or "donut hole") officially closed in 2020, but that doesn't mean people with Medicare won't pay anything once they pass the Initial Coverage Period spending threshold. As this chart illustrates, total out-of-pocket costs will need to reach $7,050 before a beneficiary reaches the Catastrophic Benefit Period.

Our infographic explains who (people with Medicare, plans, or the government) pays what in the different phases of coverage in 2022.

Looking for the Part D cost-sharing chart that explains more about these levels of costs? Find it here.