How to Avoid the Medicare Donut Hole

The coverage gap in Medicare Part D (prescription drug coverage) is referred to as the donut hole. Along with a $310 deductible as of 2010, you are responsible for paying 25 percent of prescription costs until you reach $2,830. After that, Medicare Part D will not contribute to your costs until you accumulate $6,440 in prescription expenses or until the start of a new coverage year. You will be required to pay 5 percent of the prescription costs out of pocket thereafter. The Medicare donut hole does not have to put holes in your wallet, however.

Instructions

• 1

  Use generic drugs. Since generic drugs are cheaper, you can keep costs below the coverage threshold. Start early to keep the total down.

• 2

  Ask your doctor for samples. Doctors often have prescription samples of drgus on hand. Using samples can help you stay below the coverage limit or save you money if you do fall into the donut hole. A sample will also allow you to see how you react to the medication before filling an entire prescription. If you have adverse effects, you will know before wasting money and getting closer to the coverage limit.

• 3

  Compare prices at different pharmacies. Not all pharmacies charge the same prices for a specific drug. A few dollars in savings can add up, especially if you are getting close to the coverage gap. Call local pharmacies for rates before dropping off your prescription.

• 4

  Eliminate unnecessary medications. If money is a big concern, consider eliminating prescriptions that are not absolutely necessary. For example, if you take a prescription medication for acid reflux, an over-the-counter medication may be just as effective. Talk to your doctor to evaluate your current needs.