; but (2) does not apply to such individual with application of subsection (a)(1). Such subsidy may be paid in such manner and at such times as specified by the Secretary. (c) Catastrophic limit subsidy eligible individual For purposes of this section, the term catastrophic limit subsidy eligible individual means, with respect to a prescription drug plan under this part and plan year, a part D eligible individual enrolled in such plan for such year who has incurred out-of-pocket costs described in subsection (e) for eligible Medicare drugs furnished to such individual during such year above the OOP drug catastrophic limit specified in subsection (d) for such year. (d) OOP drug catastrophic limit For purposes of this part, the OOP drug catastrophic limit specified in this subsection is— (1) for plan year 2021, $2,600; and (2) for a subsequent plan year, the dollar amount applied under this subsection for the previous plan year, increased by the annual percentage increase in average per capita aggregate expenditures for covered part D drugs in the United States for part D eligible individuals, as determined by the Secretary for the 12-month period ending in July of the previous year using such methods as the Secretary shall specify. (e) Out-of-Pocket costs described (1) In general For purposes of this section— (A) incurred out-of-pocket costs shall only include— (i) costs incurred with respect to covered part D drugs for the annual deductible described in paragraph (1), for cost-sharing described in paragraph (2), and for amounts for which benefits are not provided because of the application of the initial coverage limit described in paragraph (3), but does not include any costs incurred for covered part D drugs which are not included (or treated as being included) in the plan’s formulary; and (ii) costs, determined based on submitted claims and without regard to any deductible under part B, incurred for cost-sharing under such part for part B drugs described in subsection (g)(1)(B)