What are the four stages of prescription drug coverage in the correct order?

The correct order of the four stages of prescription drug coverage under Medicare Part D begins with the Deductible stage, where individuals pay out-of-pocket for their prescriptions until they reach a predetermined amount. Following the Deductible stage, the Initial Coverage stage occurs, during which beneficiaries pay a copayment or coinsurance for their medications until they reach a certain spending limit.

Once this limit is reached, individuals enter the Coverage Gap, sometimes referred to as the "donut hole." During this stage, beneficiaries pay more for their prescriptions until they reach the threshold indicating they are eligible for Catastrophic Coverage. In the Catastrophic Coverage stage, costs significantly decrease, with beneficiaries only responsible for a small copayment or coinsurance for covered medications.

This sequence of stages is designed to help manage prescription drug costs and ensure access to necessary medications throughout the year, clearly indicating the progression from initial out-of-pocket expenses to more significant coverage.