The Centers for Medicare and Medicaid Services (CMS) released the defined standard benefits for 2016 Medicare Part D prescription drug plan coverage and a chart comparing the standard benefit parameters from 2012 through 2016 is available at Q1Medicare.com/2016.

Here is what you can expect from standard 2016 Medicare Part D prescription drug coverage:

• The standard Initial Deductible will increase: The 2016 initial deductible will increase $40 to $360 from the current 2015 value of $320.

This means: If you enroll in a Medicare Part D plan with a standard initial deductible, you will pay slightly more in 2016 before your Medicare Part D plan coverage begins.

• The Initial Coverage Limit will increase: Medicare beneficiaries will enter the 2016 Donut Hole or Coverage Gap when the total negotiated retail cost of their prescription drug purchases reaches the initial coverage limit of $3,310, a $350 increase over the 2015 initial coverage limit of $2,960.

This means: Since the Initial Coverage Limit is based on the negotiated retail value of your medications, you will be able to buy slightly more medications before reaching the 2016 Donut Hole or Coverage Gap.  Please note that, if you purchase medications with an average retail value of less than $276 per month, you will not enter the 2016 Donut Hole.

• The Donut Hole discount will increase for generic drugs:  Next year, if you reach the Donut Hole phase of your Medicare Part D plan coverage, the 2016 generic drug discount will increase from 35% to 42%.

This means: You will save more on generic medications in the 2016 Coverage Gap.  As an example, if you reach the 2016 Donut Hole phase of your Medicare Part D plan, and your generic medication has a retail cost of $100, you will pay $58. The $58 that you spend will count toward your out-of-pocket spending limit or TrOOP.

• The Donut Hole discount for brand-name drugs will remain the same: The 2016 brand-name drug discount will remain at 55% and you will receive credit for 95% of the retail drug cost toward meeting your 2016 total out-of-pocket maximum (TrOOP) or Donut Hole exit point (the 45% you spend plus the 50% drug manufacturer discount).

This means: You will have the same savings on brand-name drugs in the 2016 Coverage Gap.  For example, as in 2015, if you reach the 2016 Donut Hole and purchase a brand-name medication with a retail cost of $100, you will pay $45 for the medication, and receive $95 credit toward meeting your 2016 out-of-pocket spending limit – or Donut Hole exit point.

• Total Out-of-Pocket Costs or TrOOP will increase: TrOOP is the actual dollar figure you must spend to get out of the Donut Hole or Coverage Gap, excluding monthly premiums. The 2016 TrOOP threshold will increase by $150 to $4,850 from the current 2015 value of $4,700. As noted above, brand-name medication purchases in the Donut Hole are discounted by 55%, but you will receive credit of 95% of the retail drug price toward meeting the 2016 TrOOP threshold.

This means: You will have to spend slightly more to get out of the 2016 Donut Hole than you did in 2015. To help you visualize how these 2016 plan changes may impact your prescription drug spending next year, we have launched our 2016 Q1Medicare.com PDP-Planner or Donut Hole calculator found at PDP-Planner.com/2016.  Our PDP-Planner allows you to enter your estimated retail prescription drug costs (based on your current spending) and preview what you can expect to pay throughout the different phases of your 2016 Medicare Part D plan coverage. To get you started, you can click here to see an example of the 2016 Medicare prescription drug plan phases for someone with $800 per month retail medication expense.

• No 2016 Medicare Advantage plan can have an in-network Maximum Out-of-Pocket (MOOP) spending limit over $6,700: CMS establishes a limit on how high a Medicare Advantage plan can set their Maximum Out-of-Pocket limit (MOOP) and, as in 2015, no 2016 Medicare Advantage plan can have a MOOP higher than $6,700 for in-network eligible medical expense cost-sharing.

This means: Your 2015 Medicare Advantage plan can raise your maximum out-of-pocket spending limit (MOOP) in 2016, but you can expect that your Medicare Advantage plan covered healthcare expenses will not exceed $6,700 for in-network cost-sharing.  (Please note that, depending on your Medicare plan, your out-of-network medical costs may count toward a higher MOOP or not count at all toward your annual MOOP.)

Question: Will all 2016 Medicare Part D prescription drug plans follow these new plan limits?

No. The Medicare Part D defined standard benefit parameters are released each year by Medicare and set minimum standards for next year’s Medicare Part D prescription drug plan coverage. However, Medicare Part D providers are allowed to deviate from the defined standard benefits and offer Medicare Part D prescription drug plans with more enhanced features such as a $0 initial deductible or additional coverage in the Donut Hole or Coverage Gap.

Question: When can we see the actual details of the 2016 Medicare Part D and Medicare Advantage plans?

October 1st. The 2016 annual Open Enrollment Period will begin on October 15th and continues through December 7th. However, the marketing period for 2016 Medicare plans will begin on October 1^st and actual Medicare Part D and Medicare Advantage plan details will become available around this time. If you would like us to send you a notification when the 2016 Medicare Part D plan information becomes available, please click here to sign-up for our free email 2016 Reminder Service.  As is our policy, we will not share your email with anyone.