Medicare Part D

Medicare Part D 2021 Costs

Medicare Part D 2021 Costs

Medicare Part D 2021 Costs

The cost of Medicare Part D will increase in 2021. Medicare Part D is insurance coverage that lowers your out-of-pocket costs for prescription drugs. There are four stages of Medicare Part D, and each stage has new drug costs.

4 Stages of Drug Coverage and Costs in 2021

Below are the four stages of Part D drug coverage and costs in 2021.

Stage 1 – Part D Deductible

Before your Part D drug plan pays anything, the deductible (if any) needs to be paid. Stage one may have a Part D deductible, which increased $10 from $435 in 2020 to $445 in 2021. If your plan has no deductible or you pay this initial Part D deductible, you enter stage two.

Stage 2 – Part D Initial Coverage

Stage two is Initial Coverage. In this stage, Medicare helps pay for your prescription drugs. Your copays and coinsurance vary and are a percentage of an approved amount. However, in Original Medicare, the coinsurance is usually 20% of Medicare’s assignment.

For most plans, when you spend $4,130 in total drug costs in 2021, you enter the donut hole. However, if you do not spend $4,130 on prescription drugs in 2021, you will not enter the donut hole.

Stage 3 – Part D Coverage Gap

Stage three is Donut Hole, also called Coverage Gap. You pay 25% coinsurance for generic and brand-name (non-discounted cost) prescription drugs in stage three. The 2021 coinsurance costs inside the coverage gap are the same as in 2020. However, the total amount you spend inside the donut hole increases $200 from $6,350 in 2020 to $6,550 in 2021. Once you pay $6,550 in out-of-pocket drug costs, you enter stage four.

Stage 4 – Part D Catastrophic Coverage

Stage four is Catastrophic Coverage. While inside stage four, you pay the greater of 5% prescription drug cost or $9.20 brand-name / $3.70 generic. For example, if your brand-name drug costs $100, you would pay $9.20. On the other hand, if your brand-name drug costs $300, you would pay 5% or $15. However, if a generic drug only costs $50, you would pay $3.70.

Medicare Part D 2021 Deductible

In the MedicareBob video below, Robert Bache provides more details about “Tier Deductibles.” Watch this video and discover which drug tiers allow you to avoid paying the $445 Part D deductible in 2021. Furthermore, Robert announces when you can purchase the new 2021 drug plans.

Learn more about Medicare Part D drug tiers.

Get Help with your 2021 Drug Plan

As Robert says in the video, we can help you with your 2021 Drug Plan. Update: the Medicare Part D Finder form has gone away. However, the licensed agents at Senior Healthcare Direct can assist you in finding the right Part D plan. Our agents can provide you a side-by-side comparison of Medicare Part D drug plans so that you can choose the most cost-effective plan for 2021.


Last Updated on May 5, 2021 by Brian Kondas