Standard Medicare Part D prescription drug plan coverage overall cost for 2021 have seen some major changes. Your initial Deductible will increase by $10 to $445 in 2021. While some Part D plans can reduce this amount this is the max allowable. Initial Coverage Limit will increase to $4,130 from $4,020 in 2020; Out-of-Pocket Threshold will increase to $6,550 from $6,350 in 2020.
Coverage Gap (Donut Hole) will begin once you reach your Medicare Part D plan’s initial coverage limit of $4,130 in 2021 from $4,020 in 2020 and will end when you spend a total of $6,550 out-of-pocket in 2021.
Once you have spent $6,550 on your prescription drugs you will enter into what is called the catastrophic coverage phase. Once in this last phase your cost for drugs should go down substantially.
As part of the new Part D Senior Savings Model, about 30% of all 2021 stand-alone Medicare Part D plans and Medicare Advantage plans with drug coverage will offer coverage of different types of insulin at a maximum co-pay of $35 per month.
This is the second year Part D enrollees will receive a 75% discount on the total cost of their brand-name and generic drugs purchased while in the Donut Hole. This includes a 70% discount paid by the brand-name drug manufacturer and a 5% discount paid by your Medicare Part D plan.