How to avoid Medicare gap?

Asked by: Alejandra Krajcik  |  Last update: November 1, 2023
Score: 4.5/5 (16 votes)

Here are some ideas:
  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 a way to avoid the Medicare donut hole?

If you have limited income and resources, you may want to see if you qualify to receive Medicare's Extra Help/Part D Low-Income Subsidy. People with Extra Help see significant savings on their drug plans and medications at the pharmacy, and do not fall into the donut hole.

Will there be a Medicare donut hole in 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 does the donut hole work?

How long does Medicare donut hole last?

If your plan has no deductible, initial coverage starts with your first prescription. You stay in this stage until your total drug costs reach $4,660 in 2023. You stay in this stage until your out-of-pocket costs reach $7,400 in 2023. You stay in this stage for the rest of the year.

Do all Medicare members reach the coverage gap?

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. Once you and your plan have spent $4,660 on covered drugs in 2023, you're in the coverage gap. This amount may change each year.

Avoid Falling into the Medicare Donut Hole - Costing You THOUSANDS! 💸

23 related questions found

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%.

Do most people have Medigap or Medicare Advantage?

Nine in 10 people with Medicare either had traditional Medicare along with some type of supplemental coverage (51%), including Medigap, employer-sponsored insurance, and Medicaid, or were enrolled in Medicare Advantage (39%) in 2018 (Figure 1).

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 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 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.

What is going to be the Medicare premium for 2023?

The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022.

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.

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.

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.

Does the donut hole reset every year?

Does the Donut Hole or Coverage Gap restart every year on January 1st or do we stay in the Gap from the previous 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.

What are some patient assistance options once someone is in the donut hole?

5 ways to afford prescription drugs when in the “donut hole”
  • Sign up for a prescription discount card. ...
  • Download manufacturer coupons. ...
  • Comparison shop. ...
  • Speak with your doctor or pharmacist about your options. ...
  • Enroll in government programs.

What is the maximum out-of-pocket for Medicare Part D in 2023?

The out-of-pocket spending threshold is increasing from $7,050 to $7,400 (equivalent to $11,206 in total drug spending in 2023, up from $10,690 in 2022).

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.

Is the donut hole only for prescriptions?

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.

Are they doing away with the donut hole?

Over the course of several years, the ACA gradually closed the donut hole. Instead of having to pay the full cost of medications while in the donut hole, beneficiaries began paying a percentage of the cost, and the donut hole was fully closed as of 2020.

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.

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.

Why Medigap instead of Advantage?

Consider your priorities, like budget, choice, travel, and health conditions. While Medicare Advantage can be more affordable for people with long term health issues, Medigap gives you flexibility and choice by expanding your network.

Can you go back to Medicare Supplement after Medicare Advantage?

You may have chosen Medicare Advantage and later decided that you'd rather have the protections of a Medicare Supplement (Medigap) insurance plan that go along with Original Medicare. The good news is that you can switch from Medicare Advantage to Medigap, as long as you meet certain requirements.