Healthcare summit: the ‘doughnut hole’ explained

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Talking points continue to dominate the summit discussion -- so we’ll take this time to explain one of them: the Medicare ‘doughnut hole.’

Under the Medicare Part D prescription drug plan, seniors pay just 25% of the cost of their drugs, but only until they reach a threshold of $2,830. For drugs purchased beyond that amount, seniors are on the hook for 100% of the cost.

Medicare will again pick up a portion of the tab -- 95% -- once the beneficiary’s costs have reached $4,550. The ‘doughnut hole,’ or coverage gap betwen $2,830 and $4,550, is of great concern to seniors, who often skip pills or stop filling prescriptions once they’re responsible for the entire cost.

The House healthcare bill would close that gap, as would President Obama’s proposal. Democrats and Republicans alike have complained about the doughnut hole, so there really isn’t much disagreement about closing it.

That said, it’s a popular topic, so prepare to hear more about it throughout the day.

-- Kim Geiger