Figure 20.3 describes the Medicare Part D prescription drug benefi t. Look at the Web page www.partd-medicare.com/ in your area and determine the marginal coinsurance rates applicable in each segment. Then calculate the average amount spent at the following levels of charges: $2,000, $4,000, $6,000, and $8,000. Discuss the “burden” of payments under this schedule.

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Expenditures 10,000 9,000 8,000 7,000 6,000 5,000 4,000 Patient Payments OOP Drug Payments Pay-Purchase Break-Even 3,000 Deductible 2,000 1,000 "Doughnut Hole" Catastrophic Range 0 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 Dollars of Drugs Purchased Figure 20.3 Medicare Part D Prescription Drug Benefit, 2016