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What does the term donut hole mean?

Updated: 10/6/2023
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Wiki User

11y ago

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The Republican congress (when President Bush was in power) passed a measure to cover prescriptions under Medicare, up to a certain amount per person/year. After this amount was reached, the person had to pay out of his own pocket until a second amount was reached (then Medicare paid for meds again). The gap between the two amounts (what was paid for personally) was called the doughnut hole.

As part of this agreement, Medicare was forbidden to negotiate with drug providers on amounts paid for medicine!

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13y ago
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12y ago

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Q: What does the term donut hole mean?
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