Medicare Part D: The Donut Hole Update

Health care reform has the potential to be very far-reaching in its effect on all insurance companies, but also on Medicare and Medicare Part D.  The effects of the Medicare Part D “Donut Hole” have been discussed before and will continue to be as long as it affects so many people.  With the new reform going on in Washington many have wondered or already heard about how this reform will help with the Medicare Part D donut hole.

If you have not heard, the Medicare Part D donut hole is what is created when the beneficiary has paid up to the deductible, but then has a gap between that and basically what is the out-of-pocket maximum.  If reform goes through as planned all Medicare Part D beneficiaries will receive a $250 rebate check if they reach the donut hole coverage gap, possibly as early as June of 2010.  Even better, you won’t have to apply for it you will just be sent a check when you reach the magic dollar amount.

In addition to this change, Medicare Part D will become even better over the coming years as drug companies must foot more of the bill.  Eventually the donut hole will shrink to the point where beneficiaries only have to pay 25% of the cost after the original number is met.  This is a great benefit to those who struggle with Medicare Part D.