The Medicare Doughnut Hole – A Simple Concept With Complex Rules

Almost 37 million Americans (about 70% of all Medicare beneficiaries) have their prescriptions covered by Medicare Part D. This is the federal program that subsidizes the cost of prescription drugs and premiums for prescription drug plans for Medicare beneficiaries. Of the 37 million, 23 million are enrolled in prescription drug plans (PDPs) and 14 million in Medicare Advantage prescription drug plans (MA-DP plans). The remaining 30% of Medicare beneficiaries without Part D coverage either receive prescription drug benefits from another source (retiree benefits, employer-sponsored plans, TRICARE, etc.), or they do not have any type of prescription drug coverage . . .