In this Medicare video CoverRight CEO, Richard Chan provides a general overview of Medicare Part D (drug plans) and discusses the Medicare Donut Hole.
- The general cost structure of drug plans and the four stages of how you pay for your prescription drugs while on Medicare.
- What is the Medicare Donut Hole (also known as the ‘Coverage Gap’)? Is this a good or bad thing?
- How does the Medicare Donut Hole work?
- The donut hole kicks in when a Medicare recipient incurs $4,430 in drug costs (in 2022). You are then charged 25% of the drug cost until they hit $7,050 in costs (in 2022) (what you paid and what is credited to you by Medicare) which is when catastrophic coverage kicks in. Watch the video to learn how the Medicare Donut Hole works in more detail.
- There is no way to avoid the donut hole if you take many prescriptions but there are some things you can do to minimize costs including using GoodRx or exploring Mark Cuban’s Cost Plus Drug’s pharmacy.