Each year, the Centers for Medicare and Medicaid Services (CMS) adjusts the cost sharing limits for the standard Medicare Part D plan. Earlier this month, CMS announced the adjustments for 2020. Below is a summary of the adjustments for next year:
Deductible: $435 (a $20 increase from 2019)
Initial Coverage Limit: $4,020 (a $200 increase from 2019)
Donut Hole (Coverage Gap): Begins after $4,020 of prescription drug expenses have been incurred.
Out-of-Pocket Limit: $6,350 (an increase of $1,250 from 2019)
Catastrophic Coverage: Small copays are required after the out-of-pocket limit has been met.