Premium — the monthly charge you may 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 most of the cost for covered drugs.
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. Includes deductible, coinsurance or copayments and your share of the cost plus any manufacturer discounts during the coverage gap. Your monthly premiums are not included in your true out-of-pocket costs. Medicare may change this amount each year.
Catastrophic Coverage — your coverage after you pay the maximum in true out-of-pocket costs for the year. The Part D Plan pays most or all of the cost of your covered drugs for the rest of the calendar year.