Officially, Medicare drug plans no longer have a donut hole—the gap between covered drugs and catastrophic coverage. This hole was gradually closed thanks to provisions in the Affordable Care Act, and disappeared completely in 2020.
Before the hole closed, Medicare Part D beneficiaries were responsible for 100% of prescription drug costs once they reached their spending threshold, until hitting catastrophic coverage eligibility. This process left many people struggling financially, often having to choose between paying for vital medications or other necessities.
