But some people had significant out-of-pocket costs even after they bought Part D coverage. The donut hole, some spell it “doughnut,” was a part of Medicare’s prescription drug benefit from its beginning in 2006, three years after Congress passed the Medicare Prescription Drug, Improvement, and Modernization Act.īefore Part D was introduced, Medicare beneficiaries typically had to pay all costs for their prescriptions not included in Medicare Part B unless they had coverage from another source, such as retiree insurance or a Medigap plan.
No donut hole, but now a coverage gap. Part D plans, federally regulated but sold by private insurers, may require you to pay a larger share of the cost for covered drugs after your drug costs reach a certain limit.
En español | No, the infamous donut hole - when Medicare beneficiaries with Part D prescription drug coverage reached a certain level and then had to dig out by paying 100 percent of their drug costs out of pocket until they reached a certain threshold - has closed.
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