Actuarially Equivalent (AE) standard benefits are a variation of standard benefits for Part D drug plans. Actuarially Equivalent benefits provide the same deductible as Defined Standard benefits, but different cost-sharing. Actuarially equivalent benefits differ from defined standard benefits in being able to substitute some cost-sharing requirements, for example, tiered cost-sharing for drugs and networks instead of the flat 25% for the initial coverage phase.
TIP: There are four benefits types for Part D drug plans: Defined Standard (DS), Actuarially Equivalent (AE), Basic Alternative (BA), and Enhanced Alternative (EA). Learn more about the Medicare Part D Plan Benefit Types.