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what is the purpose of the donut hole in medicare prescription drug plans?
Question : what is the purpose of the donut hole in medicare prescription drug plans?
medicare prescription drug plans
Best answer:
Answer by Christina J
A donut hole speaking medically is a pillow that they sometimes use for people that have broken their tail bones or have a pressure sore on their bottom. It is round and has a hole in it, looks almost like a cushioned toilet seat.
To put it simply — cost. If the insurance company had to cover the costs during the donut hole the premium of the drug plan would be higher.
Since it is almost mandatory to sign up the government didn’t want the premium to be too high. There are plans that cover some medications through the donut hole but the premium is often higher than the benefit. Also, each insurance company negotiates the cost of the medications with the pharmaceutical companies so your cost will be different depending on the company you have. Many drugs will be on a different tier level with different companies so your total cost throughout the year can be thousands of dollars different between companies.