By: Bernard Lohner
Submitted: 2010-12-17 14:20:18 | Word Count: 427
I get a lot of people ask me about the "donut hole" being experienced with prescription drugs under the Medicare Prescription arrangement. Keep in mind that there are a number of MediCare Supplement plans and each one handles the initial portion differently. For "ease" of understanding, we are going to assume that someone is purchasing only the Part D Drug Plan (along with parts A & B).
For 2011 you will be required to pay the first $310 as a deductible on the drugs that are used. Once the deductible is exhausted, you will pay your selected co-payment or coinsurance for each drug after that until the combined amount (of what you pay - including the deductible and Medicare pays) equals $2,840.
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If you have prescrition drug costs that exceed $2,840... you have now entered the "donut hole".
While in the donut hole, you will be responsible at 100% of the cost for an additional $1,710. (officially the Government says when the combined total of the paid prescriptions reach $4,550... my math says this is the combination of the first $2,840 and the donut hole of $1,710). Keep in mind that for 2011 you may be able to get a 50% discount on some of the drugs you are receiving while in this donut hole; however you will still be responsible for the additional out-of-pocket expenses of $1,710.
If your prescriptions exceed $4,550, the coverage gap (donut hole) ends and the drug plan will now pay most of the costs for the remainder of the year. (You will still be responsible for some small co-payments).
There are some Insured Prescription Drug programs out there that may help you through; however the donut hole is supposed to be managed to 25% of the cost (roughly $425) by 2020...
Author Resource:-
Association Insurers Agency, Inc. was founded in 1966 with the specific purpose of providing Welfare Benefit Plans for Major Corporations, Unions and Association Groups. By acting as a marketing arm to our contracted Carriers, we are able to offer additional volume discounts as well as state of the art coverage either on a direct basis, or by working with Consultants and Brokers. Association Insurers Agency administers and services the following Major Benefits:
All forms of Health Coverage, including Self-Funded and Stop-Loss Reinsurance
Dental and Vision Coverage, High Limit Voluntary Personal Accident Insurance, 401-K Plans, Group Life Insurance,
Short and Long Term Disability, Group Travel Coverage (including War Risk), Group Long Term Care
