What exactly is a doughnut hole?
Unless you are on Medicare or have a family member who is, you may have heard of the doughnut hole but you probably don’t really understand it. Very few people who are subject to it really understand it. Medicare did not always cover prescription drugs. In 2003 the Medicare Prescription Drug, Improvement, and Modernization Act was passed and became effective January 1, 2006. Medicare does not provide drug coverage itself but entered into contracts with private insurance plans who provide the actual prescription drug plans. Coverage for prescription drugs may be through a supplemental plan called a Medigap plan or may be included in a Medicare Advantage Plan. Which ever form Part D coverage takes, there comes a time when the Medicare recipient must pay 100% of the cost of their prescriptions. This is the doughnut hole. There will be some variation on how plans are designed but typically Medicare beneficiaries have to pay a deductible of $310 for their prescriptions. They also pay a mont
