The doughnut hole was included in the Medicare drug
Some 3.4 million Medicare beneficiaries hit the so-called doughnut hole in drug coverage last year — and a sizable minority quit taking their medicine rather than pay full price out of pocket, a new report says.
At last year’s rate, Medicare beneficiaries were on the hook for prescription drugs after they incurred costs of $2,400. After a beneficiary spent $3,850 out-of-pocket, coverage kicked in again. That coverage gap is commonly referred to as the doughnut hole. (It doesn’t apply to low-income seniors, who qualify for a subsidy.)