If you have a Medicare Part D drug plan, there is no limit on the total amount you must pay out-of-pocket for medications each year.
But there is a catastrophic coverage threshold — $7,050 in 2022. Once you’ve paid the threshold amount out-of-pocket, catastrophic coverage kicks in and you only have to pay a small coinsurance amount (typically 5%) or a specific dollar amount copayment for covered drugs for the rest of the year.