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, you first must pay the deductible. Stage one is paying Part D deductible, which increases $10 from $435 in 2020 to $445 in 2021. Once 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, you pay only copays equal to 25% of your prescription drugs. When you spend $4,130 in total drug costs in 2021, you enter the donut hole. This initial coverage limit increases $110 from $4,020 in 2020. 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. In stage three, you pay 25% coinsurance for generic and brand-name (non-discounted cost) prescription drugs. 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.
Get Help with your 2021 Drug Plan
As Robert says in the video, we can help you with your 2021 Drug Plan. To get help, you can fill out our Drug Plan Finder form with your specific medications. Then our licensed agents at Senior Healthcare Direct will send you a side-by-side comparison of Medicare Part D drug plans so that you can choose the most cost-effective Part D plan for 2021.