What will people with Medicare Part D pay for their prescription drug plans in 2024? The Centers for Medicare & Medicaid Services (CMS) anticipates that the average premium for Part D plans will decrease slightly to $55.50 per month in the coming year.
This cost-sharing chart outlines what people with Medicare will pay for prescription coverage in each phase, including:
- A deductible of up to $545 (varies by plan)
- 25% of the costs of their prescription drugs in the Initial Coverage Period (or up to $1,257.50 if in a plan with no deductible)
- Up to a total of $8,000 out-of-pocket before the beneficiary reaches the Catastrophic Benefits Period. Once they hit this threshold, the Medicare beneficiary will pay nothing for medications for the remainder of the calendar year. Just this year (January 2024), however, the 5% coinsurance requirement for catastrophic coverage was eliminated thanks to the Inflation Reduction Act (IRA).
- Beginning in 2025, Part D prescription drug out-of-pocket costs are capped at $2,000 per year, due to the federal Inflation Reduction Act.
Note that changes to Medicare prescription costs resulting from the Inflation Reduction Act are being gradually phased in over the next few years.
