Donut Hole

The prescription drug coverage gap in Medicare Part D. Most prescription drug purchases are covered up until the limit, currently $2,800. Then the senior is on the hook for 100 percent of any further drug purchases, until he reachs the catastrophic level of $6,400 dollars in drug purchases in a single year, at which point Medicare Part D pays 95 percent. About one out of four Medicare recipients get stuck in the donut hole have to pay the whole cost on drug purchases. The Obama health law slowly closes the donut hole.

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