Which Part D benefit phase was eliminated starting with Calendar Year 2025?

The Coverage Gap phase, often referred to as the "donut hole," is the correct answer because it represents a specific stage in the Part D prescription drug benefit structure that has undergone significant changes for beneficiaries. Starting in 2025, the Coverage Gap phase will be eliminated as part of a broader effort to reduce out-of-pocket costs for Medicare recipients.

Under the traditional Part D benefit design, beneficiaries experienced a gap in coverage after reaching a certain spending threshold, leading to higher out-of-pocket expenses for their medications. However, legislative changes aimed at enhancing affordability have led to the proposal of discontinuing this phase, allowing beneficiaries to have more consistent drug coverage throughout the year without the financial burden of the gap.

In contrast, the Initial Coverage phase, Catastrophic Coverage phase, and Open Enrollment phase continue to play essential roles in the framework of Medicare Part D. The Initial Coverage phase is where beneficiaries initially receive coverage for their prescriptions until they hit a specific spending limit. The Catastrophic Coverage phase provides extensive coverage for beneficiaries who incur very high drug costs. Lastly, the Open Enrollment phase is crucial for allowing individuals to enroll in or make changes to their plans annually. Hence, the elimination of the Coverage Gap phase marks a significant shift towards making prescription medications