Final answer:
The Three Phases of a Part D Beneficiary's Coverage Calendar Year are the Initial Coverage Phase, the Coverage Gap, and the Catastrophic Coverage Phase.
Step-by-step explanation:
The Three Phases of a Part D Beneficiary's Coverage Calendar Year are the Initial Coverage Phase, the Coverage Gap (also known as the Donut Hole), and the Catastrophic Coverage Phase.
In the Initial Coverage Phase, the beneficiary pays a certain amount for prescription drugs until reaching the initial coverage limit. During this phase, the beneficiary pays copayments or coinsurance for each prescription or refill.
In the Coverage Gap, the beneficiary reaches a temporary limit on what the Medicare Part D plan will cover for prescription drugs. During this phase, the beneficiary pays a percentage of the drug costs out of pocket.
In the Catastrophic Coverage Phase, once the out-of-pocket limit is reached, the beneficiary qualifies for catastrophic coverage. During this phase, the beneficiary pays a reduced amount for prescription drugs for the rest of the year.