A Few of Our
Prescription Drug Donut Hole
What is the Medicare Part D donut hole? Also known as the “coverage gap” this is the area in which your Medicare drug coverage no longer pays for the cost of prescriptions. As of 2011, you are covered for prescription drugs until you reach $2,840, at which point you will be responsible for 100% of the cost of your drugs. When your out-of-pocket cost reaches $4,550, that’s when your prescription drug coverage kicks back in and Medicare helps pay for your prescriptions.
In the past, the donut hole was offset by other plans or extended coverage. There were Medigap policies that helped “fill the gap” of prescription drug coverage. However, the government plans to close the gap entirely by 2020.
Changes to the Prescription Drug Donut Hole through Health Reform
Recently, in 2010, the government helped seniors in need by providing a $250 rebate check to Medicare recipients who hit the coverage gap. In 2011, if you happen to reach the donut hole, then you will be given a 50% discount on the total cost of all brand name drugs.
On the flipside, many plans will be phased out, and the availability of various choices will dwindle. You will have fewer options and the options that you will have available for prescription drug coverage will likely be more expensive (to be partially offset by the government subsidies).
Whatever prescription drug coverage needs you have, we can help. Simply request a free quote through PartD-Medicare.com.