What is the Medicare Donut Hole?
The Medicare "donut hole" refers to a coverage gap in the Medicare Part D prescription drug plan. This gap occurs when a person's total drug costs (including both what they and their insurance plan have paid) reach a certain threshold, at which point they are responsible for paying a larger portion of their drug costs out-of-pocket until their costs reach a certain limit. This limit is called the "catastrophic coverage" threshold, after which the insurance…
