What is the Medicare Part D donut hole?
The standard Medicare Part D drug plan provides coverage divided into three phases. Depending on your drug plan, in the first phase you may pay a deductible and about 25% of drug costs. In the third phase, you pay about 5%. In between, there is a gap in coverage which is called the donut hole when the client must pay 100% of drug costs out of their own pocket. Many plans offer enhanced coverage, meaning paying a higher monthly premium, deductibles and/or co-payments and the donut hole may be reduced or eliminated.
