The Affordable Care Act, a major reform signed into place in 2010 by President Obama, is supposed to help control rising healthcare costs over years to come. One of the initiatives is to have the donut hole, a coverage gap in Medicare Part D, closed 100% by the year 2020. In 2013, you reach the coverage gap when you and your plan have spent $2970 and get out of it when you have spent $4700 out-of-pocket for your prescription drugs.
This is great news for those who reach the donut hole, around 3.4 million according to a HealthView Services article, but there are 27.5 million people every year who do not reach the coverage gap. Once the gap is closed in 2020, the 27.5 million people will begin incurring a percentage of the costs pushed off to those who did reach the coverage gap. Instead of the donut hole, there will be a 25% cost sharing for all brand name and generic drugs.
If you have questions choosing a Medicare plan that offers the coverage you need, contact us at MedicareSolutions at 1-800-328-7305 where a licensed sales agent will immediately assist you.