According to a new study published in the Health Affairs journal, Medicare Part D has “dramatically reduced” the number of beneficiaries caught in the coverage donut hole.
The donut hole, also known as the coverage gap, is the period of time during the year when a beneficiary is not covered and is responsible for paying drug costs out-of-pocket. Over 16,000 seniors were surveyed last fall, and a quarter of respondents said they spent $100 or more out-of-pocket on Part D drugs per month, and 8 percent reported spending more than $300 a month.
Stuart Guterman, senior program director for the Program on Medicare’s Future at the Commonwealth Fund, said, “For beneficiaries with chronic conditions, out-of-pocket costs can be a major expense…There is a tendency to view Part D as mission accomplished…I think it is important to understand that this is going to take a continued effort to try and reach the folks who are harder to reach, particularly the low-income folks, and to improve the protection the benefit offers to all seniors.â€
You may download a copy of the study in PDF here.