A deductible in a Medicare Part D plan is similar to a deductible in other types of insurance. For example, following an accident, your car needs $2,000 worth of repair. Your auto insurance policy has a $500 deductible. This means you pay the first $500, and your insurance pays the rest ($1,500).
In Medicare Part D, the deductible is the amount you are required to spend out of pocket on your medication before your coverage begins. So, if the plan you choose has a $50 deductible and your first prescription costs $75, you will pay $50 and the plan will pay $25. Once you’ve paid the deductible amount, you will be responsible only for the copayment or coinsurance required on future prescriptions.
Not all Part D plans have a deductible. Some plans with a higher monthly premium will offer a low or $0 deductible. Plans with lower or no monthly premiums may have a higher deductible. Learn more about Medicare plan costs here.