Medicare Glossary

Catastrophic Coverage

The phase of Medicare Part D drug coverage that begins after you and your plan have spent a certain total amount on covered drugs in a year. In this phase, your copays are significantly reduced. In 2025, out-of-pocket costs are capped at $2,000 annually.

True Out-of-Pocket (TrOOP)

The amount that counts toward moving you through Medicare Part D phases and into catastrophic coverage. TrOOP includes what you pay out of pocket for covered Part D drugs, plus certain payments made on your behalf.

Also known as: TrOOP