This article was updated on March 3, 2020.
The year 2020 is here! So what’s the cost of Medicare Part D in 2020? Here’s all the info you need to know.
Part D deductible
The Medicare Part D deductible in 2020 is $435. This is a $20 increase from the $415 deductible in 2019.
After you meet your deductible, you’ll enter the initial coverage period. In this period, you pay copays on each drug you are prescribed based on which Tier it’s in, you’ll pay copays up until the initial coverage limit, which is $4,020 for 2020. The money that goes toward the initial coverage limit is made up of the copays you pay and what the insurance company pays for your drugs.
Part D coverage gap
Once you reach the $4,020 initial coverage limit, you’ll be in the coverage gap, or donut hole. While in the gap, you’ll pay 25% of the cost of your brand-name prescriptions and the cost of your generics.
Part D premiums
Part D premiums have increased for 2020. For 2020, average Part D premiums are $32.74, up from $32.50 in 2019.
The catastrophic coverage limit for 2020 is $6,350. This is also called your True Out of Pocket limit. If you reach this limit, you only pay 5% of the cost of your prescriptions for the rest of the year.
Lowering drug costs
The Centers for Medicare and Medicaid Services (CMS) have been working on lowering the cost of Medicare Part D. Federal policies are in place to lower the cost of drugs, through
- increasing the use of generics,
- lowering the cost of biosimilars, and
- offering more Part D plans and pharmacy options.
The final premium information for all Medicare health plans was released by CMS in November 2019. Beginning on October 15, you can enroll or switch to a different plan during Medicare’s open enrollment period.
When the new Part D plan formularies come out this fall, make sure your Part D plan covers your prescriptions for 2021. If not, you might want to switch to a new plan.
Getting help with the cost of Medicare Part D
If your income is below a certain level and the cost of prescriptions is a burden, you can apply for Extra Help with your prescriptions.