Drug plans typically have a cap in place, or a maximum annual benefit. What happens if your drug costs exceed that cap? You are responsible for any drug costs above that maximum benefit cap. However, you can select the Catastrophic Add-on which will cover you for 100% of the cost of elegible drug costs above a specified amount.
Catastrophic coverage (also called -stop loss coverage) takes over after the cap on your base drug plan.
Basic Drug Plans provide coverage up to $5000 of eligible drug costs. You are then responsible for any eligible drug costs above $5000 per year. With the Catastrophic Add-on to the Basic Drug Plans, 100% eligible drug costs above $4500 per year would be covered.
Enhanced Drug Plans provide coverage up to $10,200 of eligible drug costs. You are then responsible for any eligible drug costs above $10,200 per year. With the Catastrophic Add-on to the Enhanced Plan, 100% of eligible drug costs abvoe $10,200 per year would be covered.
We recommend the Catastrophic Add-on as a must have as it provides coverage for when eligible drug costs become truly excessive.