| The CMS base plan works as follows:
Your out of pocket prescription drug costs are calculated on a progressive basis (like your federal income tax).
You will pay the first $250 yourself (as the Medicare Part D Plan deductible). After your deductible, you will pay 25% co-insurance towards all your prescription drug costs up to a total of $2,250.
For example, let us assume that your total yearly prescription drug expenses are $2,600.
Therefore, you will pay 25% of the difference between the deductible ($250) and $2,250 which is: (2,250 - 250)*.25 = $500.
When your costs total more than $2,250, you will be responsible for 100% of the difference between $2,250 and (as in our example) $2,600 or an additional cost of $350.
Your total ESTIMATED annual "Out of Pocket" prescription drug cost with a Medicare Part D plan should then be around: $250 + $500 + $350 = $1100
(plus the monthly premiums for the Medicare Part D plan).
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