What does TrOOP stand for and how does it affect Part D costs?

• A. True Overall Outlay Price.
• B. Total Right Of Outpatient Payment.
• C. True Out-of-Pocket; it is the amount used to trigger catastrophic coverage after which remaining costs are reduced.
• D. TrOOP is a brand name for a drug.

Answer: (C)

True Out-of-Pocket costs are the amount that counts toward reaching the Medicare Part D catastrophic coverage threshold. This total does not include your monthly premiums. It includes what you pay out of pocket in the deductible, the coinsurance and copays during initial coverage, and the amounts paid in the coverage gap (donut hole), including manufacturer discounts that count toward this total. When your TrOOP reaches the annual catastrophic-coverage threshold, you move into catastrophic coverage, where the remaining costs for covered drugs are significantly reduced and you mainly pay a small copayment or coinsurance for the rest of the year.