7. Medicare Coverage Requirements

Medicare sets minimum guidelines for the Medicare prescription drug benefit. Plans may, and many do, offer better benefits than this minimum package.

	Your plan may have a deductible, but it cannot be greater than $275 in 2008.
	On average, across all Medicare drug benefit enrollees, beneficiaries pay about 25% of prescription drug costs above the deductible and up to $2,510.
	Medicare does not pay for, and therefore does not require that plans provide, coverage in the coverage gap. In 2008, you enter the coverage gap when the total cost of your prescription drugs—including what you have paid and what has been paid by your Medicare drug plan on your behalf—goes over $2,510. You remain in the coverage gap until what you spend out of pocket in 2008—excluding what your Medicare drug plan has paid on your behalf—reaches $4,050.
	If your total out-of-pocket costs exceed $4,050 in 2008, you get catastrophic coverage. On average, Medicare and your plan together pay about 95% of the cost of your drugs for the remainder of the year, once you exceed this limit.
	Medicare drug plans may have better benefits than these minimum requirements. For example, some plans have no deductible and/or some coverage in the coverage gap.