What is the Medicare Coverage Gap Discount Program?
Drug manufacturers that make brand-name prescription drugs must sign agreements with Medicare to participate in the Medicare Coverage Gap Discount Program and offer discounts on brand-name drugs to people who’ve reached the coverage gap. This means that 50% of the cost of the drugs will be covered by the drug manufacturer and you and the Part D plan will pay a percentage. You can get these savings if you buy your prescriptions at a network pharmacy or order them through the mail. By the year 2020, the coverage gap will close and you will pay 25% for these covered drugs (including the dispensing fee), the manufacturer will pay 50% and the Part D plan will pay 25%.