Final answer:
The cost of Medicare's prescription drug coverage is shared between the plan and the individual, with the federal government covering 75 percent of prescription drug costs up to a limit after the individual pays an annual premium and deductible.
Step-by-step explanation:
The initial coverage for the Medicare prescription drug coverage plan, also known as Medicare Part D, is not covered entirely by either the customer or the plan. Instead, it is a shared cost structure. In the program's more substantial part, individuals pay an annual premium and deductible, after which the federal government pays 75 percent of their prescription drug costs up to a certain limit. In 2003, this cost-sharing measure was instituted as part of the Medicare Prescription Drug, Improvement, and Modernization Act, which was a significant expansion of Medicare aimed at helping the elderly and disabled pay for their prescription drugs.