This is the simplest explanation we know. Just to give you a simple understanding. This is the minimum coverage the drug plans must provide. Once you understand the basics, it is easy to pick which plans offer your drugs, and which ones work with your pharmacy. We can help you with that.

• There is a $295 deductible before any benefits are paid towards prescriptions
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• The insured person then pays 25% of their yearly drug costs from $275 to $2,700 and the plan pays the other 75% of the cost.
  
  
• The insured pays 100% of the next $4,350 in drugs (The Gap), minus any 25% coinsurance and deductible already paid so far in the current plan year, then,
  
  
• The insured pays 5% of the drug costs (or a small co payment) for the rest of the calendar year after you, and the insurance company, have spent $4,350 out of your pocket.
  
  
• Your drug plan pays the rest for the calendar year.

Keep in mind that the above coverage limits are the minimum madated by Medicare. Virtually all drug plans offered by private insurance provide lower (or now) deductible and various copays for each 30 day supply of drugs you purchase. And many plans offer coverage through the "Gap" for generic drugs.