Catastrophic coverage is a phase of coverage designed to protect you from having to pay very high out-of-pocket costs for prescription drugs. It usually begins after you have spent a pre-determined amount on your health care. For example, Part D prescription drug plans offer catastrophic coverage. After you have spent a certain amount out of pocket, you owe no cost-sharing for the cost of your covered drugs for the remainder of the year.

« Back to Glossary Index