6. The donut hole
Some of the 2024-2025 Medicare changes are all about the Part D “donut hole.”
Medicare prescription medication plans have a coverage gap or a short-term limit on drug plan coverage. This covering void is commonly referred to as the “donut hole.” The donut hole comes in once you and the insurance company have spent a specific amount on meds in total expenditures.
This coverage gap will begin in 2024 when both you and your drug plan spend $5,030 on approved medications, which is more than the $4,660 spent in 2023.
After you have paid the $5,030, you have to pay a percentage of your medicines out of pocket, up to your plan’s out-of-pocket maximum. After gaining this level, you will not pay more than 25% of the total medicine prices (trademarked and generic), regardless of whether you purchase your prescriptions at the pharmacy or online.
When you go above that limit, your coverage resumes. You join the emergency coverage phase after you have reached your out-of-pocket limit for covered medications ($8,000 in 2024). This phase ends in 2024, when cost-sharing for covered medications will be eliminated.
When changes happen, the best thing to do is to prepare yourself. This is why it is good to know about the Medicare changes in advance. In this way, you can get ready and have the best strategy.
As you can see, many things will not be as they used to be, and we hope that everything you have read in this article will help you. If you know any tips that might help, share them in the comments.
If you want to learn more about Medicare, this book might help you: 10 Costly Medicare Mistakes You Can’t Afford to Make
You should also read: 13 Ways to Manage Diabetes: Seniors Edition
