Medicare beneficiaries who are on a Part D Drug Plan and pay excessive amounts for their drugs, fear the ‘Donut Hole’ or the coverage gap. This gap in coverage begins after the beneficiary meets their initial coverage limit for drug cost, which is $3,750 for 2018, and ends when they spend a total of $5,000 out of pocket. During the ‘Donut Hole’ phase, the beneficiary is required to pay 35% of the cost of brand-name drugs and 44% of generics.
This ‘Donut Hole’ has been narrowing for the past eight years and was set to close in 2020. Due to President Trumps autograph last week, this gap in coverage will end a whole year earlier! What happens next year? When Medicare beneficiaries meet their initial coverage limit for drug cost, they will pay a flat 25% of the drug cost until reaching catastrophic coverage. Read more by clicking here.
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