Part D beneficiaries could see their out-of-pocket costs go up next year before they reach the catastrophic phase of the benefit, new analysis shows. Kaiser Family Foundation found the catastrophic threshold is set to increase substantially, leading to higher out-of-pocket costs for certain beneficiaries. The catastrophic threshold for 2020 will rise from $5,100 in 2019 to $6,350, an increase of $1,250, or 25%. Beneficiaries who take brand-name drugs will pay for a quarter of that increase out-of-pocket, while the rest will be covered by drugmakers’ discounts. Beneficiaries who take only generic drugs will pay the entire increase out-of-pocket, according to the study.


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