Final answer:
The first stage of Medicare Part D is the deductible phase, where beneficiaries pay the full cost of their prescription drugs up to a certain amount. This initial stage is critical for providing prescription drugs to the elderly and disabled, as introduced by the Medicare Prescription Drug and Modernization Act of 2003.
Step-by-step explanation:
The first stage of Medicare Part D is known as the 'deductible phase.' During this stage, beneficiaries pay the full cost of their prescription drugs up to a certain deductible amount set by their plan before Medicare starts to share the cost of the drugs. After meeting the deductible, they move to the second stage, which is the initial coverage phase where Medicare covers a significant portion of the drug costs while the beneficiary pays a copayment or coinsurance.
Prescription drugs are a crucial component of health care for the elderly and disabled population. The implementation of the Medicare Prescription Drug and Modernization Act of 2003, which created Part D, has helped these individuals to afford the medications they need, although it has been met with various criticisms. These include concerns about the program's high costs, overhead, and potential inflationary impacts on the cost of drugs.