insurance

What is the Medicare "doughnut hole?"

 

What is Medicare "doughnut hole?"

The Bankrate.com financial term of the day is: "Medicare 'Doughnut Hole.'"

Medicare's Part D prescription drug coverage has included the notorious Medicare "doughnut hole." At one time, when seniors' annual drug costs reached a certain level, they'd find themselves paying the full cost of their medications until they reached Part D's very high out-of-pocket limit. And only then would coverage pick up again. Health care reform is gradually closing that gap.

Thanks to the Affordable Care Act, the Medicare "doughnut hole" will be gone completely by 2020. At that time, recipients will pay just 25 percent of the cost of their medications no matter how much they spend, with no lapse in coverage.

To compare insurance policies, get a quote by visiting the Insurance section at Bankrate.com.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
 

A little research could save you BIG on interest.

Don't have time? Our rate-tracker tool saves you time and money. Delivered Thursdays.
 
advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Check credit before auto loan

The news that an auto finance company distorted consumer credit records for years is a good reminder to check your credit report regularly.  ... Read more


Connect with us