August 27, 2024
The Medicare Part D Coverage Gap, also known as the “Medicare donut hole,” will be eliminated in 2025 as a result of provisions in the Inflation Reduction Act.
What is the Medicare Donut Hole?
The coverage gap occurs when Medicare beneficiaries enrolled in Part D exceed their plan’s initial coverage limit. Between exceeding initial coverage and moving into the catastrophic coverage phase, beneficiaries are responsible for 25% of their Part D prescriptions.
Read more about the Medicare Coverage Gap
What’s New in 2025?
Beginning in 2025, Medicare Part D enrollees will see their annual out-of-pocket costs capped at $2,000, thus eliminating the “donut hole.” This cap will be applied automatically for anyone with Part D coverage.
Read more about the Medicare Part D spending cap
