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Medicare Part D: How The Finances Work


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A co-pay is a set dollar amount you pay you pay each time you obtain a drug or other medical service.

With respect to Medicare, when you purchase drugs, the amount of the co-pay generally depends on how many tiers of drug coverage a Plan has, and which tier your drug falls into. For example, under a three tier system, there would be:

  • A co-pay for generic drugs
  • A higher co-pay for brand name drugs
  • An even higher co-pay for more rare, high cost drugs.

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