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 choice because starting in Calendar Year 2025, significant changes were made to Medicare Part D to provide more financial relief to beneficiaries. The goal of these changes is to reduce out-of-pocket costs for prescription drugs as a part of the broader effort to make healthcare more affordable.

Prior to 2025, beneficiaries would enter the Coverage Gap after they had spent a certain amount on medications, leading to increased costs until they reached the next phase of Catastrophic Coverage. However, with the adjustments in 2025, this phase is being eliminated, allowing for a more straightforward and economical approach to accessing medications. This is part of changes initiated by legislation aimed at making prescription drugs more accessible by ensuring that beneficiaries do not experience a gap in coverage that results in higher out-of-pocket costs.

The other phases of Medicare Part D – such as the Initial Coverage phase, Deductible phase, and Catastrophic Coverage phase – will remain; thus, the elimination of the Coverage Gap phase represents a significant shift in how Medicare Part D functions, aimed at benefiting enrollees directly.