Medicare and Retiree Benefits Q401. What changes have been made to the Medicare drug benefits?
A401. The primary changes address the so-called “donut hole.” First, those individuals who hit the donut hole in 2010 will get a $250 payment to defray their out-of-pocket costs. Second, starting in 2011, drug manufacturers will have to provide a 50% discount on brand drugs in the donut hole for most Part D participants. Third, the donut hole itself will be gradually phased out through 2020. Finally, to pay for some of these new benefits, Part D premiums will become income-related and will increase for the same beneficiaries who pay increased Part B premiums.
