The End of the Doughnut Hole

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AARP has renewed its efforts to have Medicare close the gap in prescription coverage known as the “doughnut hole.” Roughly 3.4 million Medicare Part D beneficiaries fall into this gap in coverage each year. The bigger problem is that of these only 15% end up spending enough out of pocket money to hit the upper limit and receive catastrophic coverage.
This gap in coverage totals $3,454 in out-of-pocket spending. By 2016, that gap is expected to exceed $6,000. AARP is fighting this stating it is much too high. Higher costs for prescription drugs lead people into skipping doses or discontinuing their prescriptions all together. They put their health in jeopardy and drive up long-term costs due to poor health.
The “doughnut hole” gap in coverage is difficult for most people to understand. Here is a breakdown for you.
| Calendar Year Deductible | You Pay | Plan Pays |
| $250 | 100% | 0% |
| $250-$2,250 | 25% | 75% |
| $2,251-$3,600 | 100% | 0% |
| >$3,600 | 5% | 95% |
To read more about the AARP campaign, check out this article by Chris Silva of AMNews.
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