The Elimination of the Medicare Drug Plan Donut Hole The Donut Hole & Inflation Reduction Act The Inflation Reduction Act, passed by Congress in 2022, will provide a definite benefit to some seniors beginning in 2025. This act will eliminate the Medicare prescription drug plan coverage gap, which is non-affectionately referred to as the donut hole. How the Donut Hole Works First, let us review what the coverage gap (donut hole) is and the way it has worked ever since Medicare drug plans were initiated January 1, 2006. The easiest way to explain it is to realize that every time someone with a Medicare prescription drug plan gets a medication filled through that drug plan, Medicare adds up the retail cost of that medication. Let’s suppose the retail cost of that medication is $600 but your hypothetical copay ...via Claeys Group Insurance Services - Tyler, TX Medicare Insurance Agency










