CHICAGO- It’s called the “Donut Hole.”  It is what happens to seniors when they are caught between coverage of prescription drug coverage.

Seniors who participate in Medicare Part D and spend more than $2,830.00 dollars a year on medication but have not yet reached a total of $6,440.00 for that year must come up with 100% of the money in between (the donut hole) up to$3,610 if they do not have LIS -the extra help plan for low income seniors or a specially designed plan by a private company.

The Medicare Prescription Drug Improvement, and Modernization Act in 2003 created the “Donut Hole” in an effort to reduce costs to the federal government.  According to The Kaiser Family Foundation in about 80% of Medicare plans, a gap exists in prescription coverage.  The new Health Reform law will begin to close that gap starting June 15th with tax-free rebate checks.

“This year we start by sending checks for $250.00 to those seniors who have lost their coverage for prescription drugs.” said U.S. Senate Majority Whip Dick Durbin (D-IL) speaking to a group of about 200 seniors in Chicago on Monday.

Although $250.00 dollars still leaves thousands of unpaid dollars, the number is expected to jump to 50% of the coverage gap next year and by the year 2020 the gap is expected to be bridged completely leaving no more “Donut Hole”.

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