Donut Hole

The Donut Hole, also known as the coverage gap, is a phase in Medicare Part D prescription drug plans where beneficiaries are responsible for a higher percentage of their medication costs. Once a beneficiary reaches the initial coverage limit, they enter the Donut Hole, where they must pay a higher percentage of the drug costs until they reach the catastrophic coverage threshold. During this phase, beneficiaries may face significant out-of-pocket expenses for their medications.