Mr.Smalley is a retiree on the Medicare prescription drug plan. This year his drug expenditures are $5,100. What percentage will Medicare pay of the medications that cost between $2,250 and $5,100?

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Medicare Part D has a coverage gap known as the "donut hole." In 2023, after reaching the initial coverage limit of $4,660, beneficiaries enter the donut hole, where they pay a higher percentage of drug costs until reaching the out-of-pocket threshold. For costs between $2,250 and $5,100, Mr. Smalley is in the donut hole, where traditionally Medicare pays 0% of the costs.

MrSmalley Is a Retiree on the Medicare Prescription Drug Plan