Does Medicare supplement cover the donut hole?

Asked by: Della Schinner  |  Last update: September 24, 2023
Score: 4.6/5 (26 votes)

There is not a Medicare plan that covers the donut hole. You may wonder if a Medigap could help you avoid donut hole costs.

Is there a way to avoid the Medicare donut hole?

Consider Extra Help or State Assistance Programs

If you qualify, the Extra Help program (also called the Low-Income Subsidy program) can provide financial assistance with Medicare Part D costs. You must have limited income and assets to qualify, and the specific qualification threshold may change each year.

Does everyone on Medicare have the donut hole?

Most Medicare drug plans have a coverage gap (also called the "donut hole"). This means there's a temporary limit on what the drug plan will cover for drugs. Not everyone will enter the coverage gap. The coverage gap begins after you and your drug plan have spent a certain amount for covered drugs.

How long do you stay in the donut hole with Medicare?

When does the Medicare Donut Hole End? The donut hole ends when you reach the catastrophic coverage limit for the year. In 2023, the donut hole will end when you and your plan reach $7,400 out-of-pocket in one calendar year.

What will the Medicare donut hole be in 2024?

In 2024, costs in the catastrophic phase will change: the 5% coinsurance requirement for Part D enrollees will be eliminated and Part D plans will pay 20% of total drug costs in this phase instead of 15%.

Medicare Donut Hole Explained Simply

24 related questions found

Will shingles vaccine be covered by Medicare in 2023?

Starting in 2023, the shingles vaccine will be 100% covered for those who have prescription drug coverage as part of a Medicare Part D plan or Medicare Advantage plan with prescription drug benefits.

How much is the Medicare donut hole for 2023?

You enter the donut hole when your total drug costs—including what you and your plan have paid for your drugs—reaches a certain limit. In 2023, that limit is $4,660. While in the coverage gap, you are responsible for a percentage of the cost of your drugs.

How do I find out if I am in the donut hole?

Once you and your Medicare Part D plan have spent a certain amount on covered prescription drugs during a calendar year ($4,660 in 2023), you reach the coverage gap and are considered in the “donut hole.” Not everyone will enter the “donut hole,” and people with Medicare who also have Extra Help will never enter it.

How much do you spend before donut hole?

After you reach a total of $4,660, you enter the Coverage Gap stage, also known as the Donut Hole.

What are the 4 stages for the Medicare donut hole?

The Four Coverage Stages of Medicare's Part D Program
  • Stage 1. Annual Deductible.
  • Stage 2. Initial Coverage.
  • Stage 3. Coverage Gap.
  • Stage 4. Catastrophic Coverage.

Is donut hole going away?

When did the donut hole close? The donut hole finally closed for good in 2020, having been phased out in 2019 for brand-name drugs and then in 2020 for generic drugs. The Affordable Care Act enacted in March 2010 gradually reduced the share of costs people had to pay in the donut hole starting in 2011.

What stage is the donut hole in Medicare?

Stage 3—Medicare Part D Coverage Gap

Most Medicare drug plans have a Coverage Gap (also called the Medicare “donut hole”). This means there's a temporary limit on what the drug plan will cover for drugs.

Does the donut hole reset each year?

Your Medicare Part D prescription drug plan coverage starts again each year — and along with your new coverage, your Donut Hole or Coverage Gap begins again each plan year. For example, your 2022 Donut Hole or Coverage Gap ends on December 31, 2022 (at midnight) along with your 2022 Medicare Part D plan coverage.

Is there any insurance that covers the donut hole?

There is not a Medicare plan that covers the donut hole. You may wonder if a Medigap could help you avoid donut hole costs. Medigap policies are private Medicare supplement insurance plans that are sold to cover additional costs and some services not traditionally covered by Original Medicare.

What happens when you get out of the donut hole?

However, when the plan has paid up to a specified limit, the person has reached the donut hole. Once they reach this point, a person has to start paying for their medications again until they reach another specified amount. After this, their plan takes over payment once again.

Is the Medicare donut hole good or bad?

The Medicare donut hole is a payment stage.

And you're right, this can be bad. It's a place where most beneficiaries can pay higher out-of-pocket costs for medications. At this donut hole stage, the drug companies are not required to pay anything toward the cost of prescribed medications for Medicare beneficiaries.

Who pays in the donut hole?

Most plans with Medicare prescription drug coverage (Part D) have a coverage gap (called a "donut hole"). This means that after you and your drug plan have spent a certain amount of money for covered drugs, you have to pay all costs out-of-pocket for your prescriptions up to a yearly limit.

How long do donut holes last?

Donut holes: Donut holes are small pieces of donut that come from the middle of a larger donut. Like all donuts, donut holes are delicious, but they can be stored in the fridge for up to three days. Make sure you wrap each donut hole individually in plastic wrap before storing them in the fridge.

What is the catastrophic coverage for Part D in 2023?

The Medicare Part D true (or total) out-of-pocket (TrOOP) threshold will bump up to $7,400 in 2023, a $350 increase from the previous year. The true (or total) out-of-pocket (TrOOP) threshold marks the point at which Medicare Part D Catastrophic Coverage begins.

How much does eliquis cost per month?

The list price for a 30-day supply of ELIQUIS is $561. On average, patients pay $51 per month, and 5 out of 10 ELIQUIS patients pay $35 or less. Co-pay Card information.

What is the deductible for Part D in 2023?

Most Part D PDP enrollees who remain in their current plan for 2023 will be in a plan with the standard (maximum) $505 deductible.

What is the difference between a donut and a donut hole?

Traditionally, doughnut holes are made by frying the dough removed from the center portion of the doughnut. Consequently, they are considerably smaller than a standard doughnut and tend to be spherical. Similar to standard doughnuts, doughnut holes may be topped with confections, such as glaze or powdered sugar.

Will Medicare Part B increase in 2024?

In its annual report released in March of this year, the Medicare Trustees forecast monthly Part B premiums to increase from $164.90 in 2023 to $174.80 in 2024.

What is the out-of-pocket maximum for 2024?

The out-of-pocket max (OOPM) for 2024 is $9,450 for self-only coverage and $18,900 for other than self-only coverage. OOPM applies to most fully insured and self-funded non-grandfathered group health plans. It does not apply to grandfathered, transitional Relief and retiree-only plans.

Should a 72 year old get shingles vaccine?

CDC recommends that adults 50 years and older get two doses of the shingles vaccine called Shingrix (recombinant zoster vaccine) to prevent shingles and the complications from the disease.