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What is the Medicare donut hole?

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.

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Warren Team
Updated March 16, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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