Your Share of the Cost
These are the types of costs you may pay with Part D plans:
Premium—the monthly charge you pay to participate in the plan and be covered for a prescription drug benefit. This amount may change each year.
Deductible—the amount you pay each year before your plan pays any part of the cost for your prescriptions. Medicare may change this amount each year.
Coinsurance—the percentage of the cost you pay for your covered drugs.
Copayment—a flat dollar amount you pay for your covered drugs.
Coverage Gap—the period when you pay the full cost for covered drugs and the plan pays nothing.
True Out-Of-Pocket Costs (TrOOP)—the amount you pay for your share of the cost of covered drugs before you are eligible for catastrophic coverage – including deductible, coinsurance or copayments, and full cost during the coverage gap. Your monthly premiums are not included in your true out-of-pocket costs. Medicare may change this amount each year.
TrOOP is the same as "OOP" for "Out-Of-Pocket" costs. You may see this term (OOP) in materials from Medicare and other Medicare prescription drug plans.
Catastrophic Coverage—your coverage after you pay the maximum in true out-of-pocket costs. The Part D plan pays most or all of the cost of your covered drugs for the rest of the calendar year.