Medicare Announces 2019 Part D Costs
The government has announced the 2018 costs for a standard Part D prescription drug plan.
- The standard deductible will increase from $405 to $415.
- The average monthly premium for a standard Part D drug plan is $33.19, a decrease of 31¢. Although it's likely no drug plan will have this premium, it establishes the Part D late enrollment penalty.
- The late enrollment penalty this year will be 31.2¢ for every month a person does not have creditable prescription drug coverage.
- The discount in the donut hole for brand-name medications will increase 10% to 75%. The discount for generic drugs will increase to 63% from 56%.
- Medicare has increased the limit for entering the donut hole (Coverage Gap) from $3,750 to $3,820 and the threshold for getting out of the donut hole is $5,100, up from $5,000. (The Coverage Gap limits are set by a formula established in the 2003 drug plan law involving the negotiated value of prescription drug costs.)
- The beneficiary’s cost sharing in the Catastrophic Coverage phase will be the greater of 5% or $3.40 (up 5¢) for generic drugs and $8.50 (up 15¢) for brand-name medications.