Filling the Medicare Part D “Donut Hole”
If you have Medicare prescription drug coverage and have to pay for your drugs in the “Donut Hole” in coverage, in 2010 you’ll get a one-time, tax-free $250 rebate from Medicare to help pay for your prescriptions.
What Is the Donut Hole?
Most Medicare drug plans have a coverage gap. This means that after you and your plan have spent a certain amount of money for covered drugs, you have to pay all costs out-of-pocket for your drugs (up to a limit). This is known as the Donut Hole in drug coverage.
The Explanation of Benefits notice, which your drug plan mails to you each month when you fill a prescription, will tell you how much you’ve spent on covered drugs and whether you’ve entered the coverage gap.
Filling the Donut Hole in 2011 and beyond
Starting in 2011, if you have high prescription drug costs that put you in the donut hole, you’ll get a 50% discount on covered brand-name drugs while you’re in the donut hole. Between 2010 and 2020, you’ll get continuous Medicare coverage for your prescription drugs and by 2020 the donut hole will be completely closed.
For More Information
Learn more about closing the prescription drug coverage gap (PDF | 3.6 MB).
Posted: July 7, 2010
Last updated: April 18, 2011