How much will drugs cost in the Catastrophic Coverage stage?

Beginning in 2025, the Catastrophic Coverage drug payment plan means no more copayments.

In the past, once reaching this stage, the beneficiary paid 5% for most drugs. Then, in 2024, as a result of the Inflation Reduction Act, there were no costs for medications in this payment stage. (The threshold was about $8,000.)

As of January 1, 2025, there is still a Catastrophic Coverage payment stage. The threshold is the $2,000 cap and there will no additional cost for medications.