Once you come out the other side of the donut hole and reach the catastrophic coverage level, your plan pays most of your prescription drug expenses through the end of the year, leaving you with minimal copays or coinsurance. At this coverage level, your prescription costs for the rest of 2023 are limited to the greater of 5%t coinsurance, or copays that amount to $4.15 for generics and preferred multi-source drugs, and $10.35 for other brand-name drugs.
As of 2024, as a result of the Inflation Reduction Act, there will no longer be any out-of-pocket costs during the catastrophic coverage phase.
And also under the Inflation Reduction Act, there will be a $2,000 cap on Part D out-of-pocket costs as of 2025 (indexed for inflation in future years).