The Donut Hole & Inflation Reduction Act The Inflation Reduction Act, passed by Congress in 2022, will provide a definite benefit to some seniors beginning in 2025. This act will eliminate the Medicare prescription drug plan coverage gap, which is non-affectionately referred to as the donut hole. How the Donut Hole Works First, let us...
So, to what are people referring when they speak of the Medicare Part D donut hole? The donut hole, also known as the coverage gap in Medicare circles, occurs after someone with a Medicare Part D drug plan has hit a certain spending limit on their prescription costs. When that limit is hit, then the costs go up for the person with the Part D plan. So, let’s see exactly how that works.