The Medicare Modernization Act (MMA) established a standard drug benefit that all Part D plans must offer. The standard benefit is defined in terms of the benefit structure and without mandating the drugs that must be covered. For example, in 2013, the standard benefit required payment by the beneficiary of a $325 deductible, then required 25% coinsurance payment by the beneficiary of drug costs up to an initial coverage limit of $2,970 (the full retail cost of prescriptions). Once this initial coverage limit is reached, the beneficiary had to pay the full cost of his/her prescription drugs up until the total out-of-pocket expenses reached $4,750 (excluding premiums and any expense paid by the insurance company) minus a 52.5% discount in this gap, referred to as the "Donut Hole". Once the beneficiary reaches the Out-of-Pocket Threshold, he/she becomes eligible for catastrophic coverage. During catastrophic coverage, he or she pays the greater of 5% coinsurance, or $2.65 for generic drugs and $6.60 for brand-name drugs. The catastrophic coverage amount is calculated on a yearly basis and a beneficiary who reaches catastrophic coverage by the end of the benefit year will start his or her deductible anew at the beginning of the next benefit year. Although uncommon, not all benefit years coincide with the calendar year. The donut-hole and catastrophic-coverage thresholds dropped slightly in 2014 and typically go up and down slightly between given years.