I use a brand-name drug that has a retail cost of $250 and there is no generic. What will I pay when I reach the Donut Hole and Catastrophic Coverage phases of my 2016 drug plan?

You will pay $112.50 in the Donut Hole and $12.50 in the Catastrophic Coverage phase.

Once the total retail value of your 2016 Medicare Part D drug purchases exceed $3,310, you will enter the 2016 Donut Hole or Coverage Gap and pay 45% of the retail price for your brand-name medications – assuming that your Medicare prescription drug plan does not provide any coverage in the Donut Hole. However, you will get a credit of 95% of the retail cost toward meeting your total out-of-pocket limit of $4,850.

This means that if you reach the 2016 Donut Hole and purchase a $250 brand-name medication, you will receive a 55% drug discount, pay $112.50, and get 95% of the retail price or $237.50 credited toward meeting your $4,850 out-of-pocket limit.

If you exceed the $4,850 out-of-pocket limit, you will reach the 2016 Catastrophic Coverage phase of your Medicare Part D plan and pay the higher of $7.40 or 5% of the brand-name retail drug price. So if you reach the Catastrophic Coverage portion of your Medicare Part D plan, you will pay $12.50 for a $250 brand-name medication.

Reminder: You can use our Drug Finder ( on this site) to see the average retail cost of any medication covered by your Medicare prescription drug plan. But remember, actual negotiated retail drug prices can vary pharmacy-to-pharmacy and week-to-week.