How do I avoid the Medicare Part D donut hole?

Asked by: Mr. Uriel Hermann  |  Last update: December 5, 2023
Score: 4.3/5 (47 votes)

Five Ways to Avoid the Medicare Part D Coverage Gap (“Donut Hole”)
  1. Buy Generic Prescriptions. ...
  2. Order your Medications by Mail and in Advance. ...
  3. Ask for Drug Manufacturer's Discounts. ...
  4. Consider Extra Help or State Assistance Programs. ...
  5. Shop Around for a New Prescription Drug Plan.

Is there Medicare Part D without donut hole?

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.

How does Medicare donut hole work in 2023?

In 2023, you'll enter the donut hole when your spending + your plan's spending reaches $4,660. And you leave the donut hole — and enter the catastrophic coverage level – when your spending + manufacturer discounts reach $7,400. Both of these amounts are higher than they were in 2022, and generally increase 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.

Can I use GoodRx if I'm in the donut hole?

GoodRx can't be used in combination with Medicare, but it can be used in place of Medicare. You may want to consider using GoodRx instead of Medicare when Medicare doesn't cover your medication, when you won't reach your annual deductible, or when you're in the coverage gap phase (“donut hole”) of your Medicare plan.

Medicare Part D Explained | (And How To Avoid The Donut Hole)

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How much do you have to spend to get out of the donut hole on Medicare?

How do I get out of the donut hole? In all Part D plans, you enter catastrophic coverage after you reach $7,400 in out-of-pocket costs for covered drugs. This amount is made up of what you pay for covered drugs and some costs that others pay (see below).

How do you get out of donut hole?

How to get out of the donut hole. In 2020, person can get out of the Medicare donut hole by meeting their $6,350 out-of-pocket expense requirement. However, there are ways to receive assistance for funding prescription drugs, especially if a person meets certain low income requirements.

Does Medicare Advantage eliminate the donut hole?

Some people ask: Do Medicare Advantage plans cover the donut hole? If you choose to include Medicare prescription drug coverage in your Medicare Advantage plan, it will still have a donut hole just like a regular Part D plan. Medicare Advantage does not cover any additional Part D costs during the coverage gap.

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.

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%.

How do you get out of the donut hole in 2023?

For 2023, once you've spent $7,400 out of pocket, you're out of the Coverage Gap and moved into stage 4—Catastrophic Coverage. What counts toward the Coverage Gap: Your yearly deductible, coinsurance and copayments. The discount you get on brand-name drugs in the Coverage Gap.

What will we be paying for Medicare Part B in 2023?

Most people pay the standard Part B monthly premium amount ($164.90 in 2023). Social Security will tell you the exact amount you'll pay for Part B in 2023. You pay the standard premium amount if you: Enroll in Part B for the first time in 2023.

How much are they going to take out for Medicare in 2023?

The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.

What happens if you don't have Medicare Part D?

If you don't have Part D in place and you develop a medical condition that requires expensive drugs, you may have to pay the full price. And worse, you'll still be accumulating penalties that will be payable when you do decide to enroll in a Part D plan.

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.

How did the ACA close the donut hole?

Drug plans did not pay anything toward the cost of drugs in the donut hole so beneficiaries were stuck with the tab for the entire cost. Beginning in 2011, the Affordable Care Act (ACA) took measures to close the donut hole, known as the Coverage Gap. Then, in 2012, the ACA implemented discounts for the Coverage Gap.

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.

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.

Does SilverScript have a donut hole?

SilverScript is the Medicare Part D prescription drug plan for members of the State Employee Health Plan. They offer two plans, Premium and Economy. The Premier Plan has a $0 deductible. It has 5 Tiers and offers coverage through the Gap (Donut-Hole) on all tiers.

Does Medicare Advantage replace Medicare Part D?

Medicare Advantage is a Medicare-approved plan from a private company that offers an alternative to Original Medicare for your health and drug coverage. These “bundled” plans include Part A, Part B, and usually Part D.

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.

What is the Humana donut hole?

This is called the coverage gap, or the donut hole. In 2023, this coverage gap will be triggered once you and your plan spend a combined $4,660 on covered medications. Once you're in the coverage gap, you will pay a maximum of 25% of the cost for brand-name drugs in your plan.

What happens after the donut hole?

If you enter the Donut Hole, you may have to pay a higher price for your medications until the next January 1, or until your out-of-pocket costs qualify you for another level of insurance called Catastrophic Coverage.

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 SilverScript Part D good plan?

All of Aetna's PDPs have a Medicare star quality rating of 3.5 out of five stars. Aetna's SilverScript Smart Saver plan has the lowest average monthly premium in 2023, and CVS is one of four main providers of stand-alone Part D prescription drug plans in the United States.