If you or someone you love is on Medicare, then you’ve probably heard about the“doughnut hole”.
The “doughnut hole” is the gap in Medicare’s coverage for prescription drug costs.
Medicare Plan D is the plan which offers prescription drug coverage to Medicare beneficiaries but the plan has become infamous for what is commonly known as the "doughnut hole".
The "doughnut hole" is a gap where a Medicare beneficiary becomes 100% responsible for payment of medication costs once the limit of $2,930 in prescription costs has been reached.
The good news is that changes are underway to help Medicare beneficiaries meet and manage prescription drug costs.
First, a new benefit has been added in 2012 which allows Medicare beneficiaries to get a 50% discount on brand-name drugs and a 14% discount on generic prescriptions.
Once the out-of-pocket cost of $4,700 is met by the Medicare beneficiary, then individuals can qualify for another level of assistance which will limit prescription drug costs to 5% of annual prescription drug costs.
Even better news is coming…The Affordable Health Care Act of 2010 has set out a plan whereby the doughnut hole will become smaller over the coming years and by the 2020, the doughnut hole will have disappeared.