Medicare Announces 2021 Part D Costs
The government has announced the 2021 costs for a standard Part D prescription drug plan.
- The standard deductible will increase from $435 to $445.
- The average monthly premium for a standard Part D drug plan is $33.06, an increase of 36¢. 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 33.1¢ for every month a person does not have creditable prescription drug coverage.
- The discount for both brand-name and generic medications in the donut hole (Catastrophic Coverage) will be 75%.
- Medicare has increased the limit for entering the donut hole (Coverage Gap) from $4,020 to $4,130 and the threshold for getting out of the donut hole is $6,550, up from $6,350. (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 $3.70 (up 10¢) for generic drugs and $9.20(up 25¢) for brand-name medications.