What is the Part D “doughnut hole” or coverage gap and how does it work?
For the first year of Part D coverage, you are responsible for approximately 25% of the drug's cost. You join the coverage gap or doughnut when you and your prescription plan have spent a total of $3,700 for drugs in 2017. You can pay no more than 40% of the plan's price for a brand-name drug and 51% for a generic drug during this second process.
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*Clients who compared seven plans found savings of $1,011.84 over the course of a year.
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