Which phase is NOT included in the newly designed standard Part D benefit as of 2025?

The coverage gap, often referred to as the "donut hole," is being eliminated in the newly designed standard Part D benefit starting in 2025. This change aims to streamline coverage and reduce out-of-pocket expenses for beneficiaries during this phase of their prescription drug plan.

In contrast, the deductible phase, initial coverage phase, and catastrophic coverage phase remain critical components of the Part D benefit structure. The deductible phase is where beneficiaries pay a set amount before their plan starts to pay for prescriptions, while the initial coverage phase is where beneficiaries share costs for medications until they reach a predetermined spending limit. The catastrophic coverage phase offers significant relief for beneficiaries who have high drug costs, as it provides lower copayments for medications after spending has exceeded a certain threshold.

The removal of the coverage gap is a significant shift intended to provide more consistent and predictable out-of-pocket costs for beneficiaries.