Medicare Part D: What's the Donut Hole?
Many people, especially those with Medicare, or those who are about to become Medicare eligible, have heard the term "donut hole' as it relates to Medicare. Well, what exactly is the donut hole? The donut hole is what Medicare refers to as a coverage gap. What this means is that you and your drug plan have reached a maximum limit on the amount of covered drugs. Let me better explain with an illustration:Monthly Premium: You will pay this amount once per month for the year
As you can see, the coverage gap (donut hole), is not a very sweet place where you want to find yourself. However, not everyone will enter the coverage gap, and there are plans with additional coverage during the coverage gap. Likewise, these plans may come at a higher monthly premium. You will also need to check with that drug plan first to make sure that your drugs will be covered.