The "donut hole" in Medicare Part D coverage refers to the fact that

Question

Quizplus · Accepted Answer

The "donut hole" refers to the gap in coverage within Medicare Part D where beneficiaries had to pay 100% of their drug costs out of pocket after reaching a certain level of spending (in 2021, this gap begins after $4,130 in total drug costs). After reaching a higher level of spending, individuals then receive catastrophic coverage where they pay only a small portion of their drug costs. Option A is incorrect as it suggests that coverage begins significantly later than it actually does. Option C is irrelevant to the topic at hand. Option D is partially correct in describing when coverage ends for those who spend a great deal on prescription drugs, but does not fully explain the concept of the "donut hole".

The "Donut Hole" in Medicare Part D Coverage Refers to the Fact