Donut Hole

The Medicare Part D coverage gap, also known as the Medicare Donut Hole, was enacted as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) and went into effect on January 1, 2006 for individuals aged 65 or older. The Donut Hole, or coverage gap, is one of the most controversial parts of the Medicare Part D pres... cription drug benefit and of concern to many people who have joined a Part D drug plan. Although all prescription drug plans must explain the Donut Hole in their literature and advertising, it still comes as a shock to many enrollees when they go abruptly from making co-payments for their drugs to paying 100% of the cost. The Donut Hole is the difference of the initial coverage limit of $310 and the catastrophic coverage threshold of $6,440, as described in the Medicare Part D prescription drug program of the United States. After a Medicare beneficiary surpasses the prescription drug coverage limit of $2,830 the Medicare beneficiary is financially responsible for the entire cost of prescription drugs until the expense reaches the catastrophic coverage threshold. Comparison of 2006 through 2010.Read More