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What is the Medicare donut hole?

InsuranceWarren Team

Quick answer

The Medicare Part D donut hole was a coverage gap where seniors paid high coinsurance after initial coverage limits. Starting in 2025, the Inflation Reduction Act eliminated the gap and capped annual out-of-pocket prescription costs at $2,000.

Medicare Part D 2025 phases showing $2,000 out-of-pocket cap.

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