Consumers Should Review Their Current Medicare Private Drug Plans' Costs And Benefits And Compare All Their Drug Plan Options For 2008

Earlier we posted that in Orange County, CA, there is no option for higher premiums to cover the doughnut hole, so it's a good idea to check and see how your current plan stacks up this year. BD

Medicare private drug plans have a gap in coverage known as the "doughnut hole," during which people must pay the full cost of their prescriptions. In 2008, the gap for many plans begins when total drug costs (what the consumer pays plus what the plan pays) reach $2,510. The coverage gap ends and catastrophic coverage begins after the consumer has spent $4,050 out of pocket. People with catastrophic coverage will then pay 5 percent of the cost of each drug or a copayment of $2.25 for covered generics and $5.60 for covered brand-name drugs, whichever is greater. There are plans in most states that offer some coverage through the gap, but they generally have higher monthly premiums and most cover only generic drugs in the gap.