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Home > Glossary > donut hole (coverage gap)

donut hole (coverage gap)

What is the Medicare ‘donut hole?’

Author: Louise Norris
donut hole (coverage gap) infographic

What is the Medicare donut hole (coverage gap)?

The Medicare Part D “donut hole,” which existed from 2006 (when the Medicare Part D began) through 2024, referred to the coverage gap in the Part D prescription drug benefit. This gap existed after an enrollee’s prescription drug costs exceeded the initial coverage limit (an amount set each year by CMS), but had not yet reached the catastrophic coverage level.

The donut hole no longer exists as of 2025, due to the Inflation Reduction Act. Instead, Medicare Part D now just has three phases: The deductible phase, the initial coverage phase, and the catastrophic coverage phase.

Learn more about how Part D coverage works now that the “donut hole” has been eliminated.

Related Articles

Does the Medicare Part D ‘donut hole’ still exist?

Does the Medicare Part D ‘donut hole’ still exist?

As of 2025, the Medicare Part D “donut hole” no longer exists – meaning there is no longer a coverage gap during which Part D enrollees face higher drug costs. Learn how coverage works now that the 'donut hole' has been eliminated.

How has the Inflation Reduction Act affected Medicare enrollees?

How has the Inflation Reduction Act affected Medicare enrollees?

Beginning in 2023, a series of changes began to be phased in under the Inflation Reduction Act, designed to lower out-of-pocket costs, expand access to vaccines, and rein in drug price increases.

How will my Medicare prescription drug costs in 2026 compare with 2025?

How will my Medicare prescription drug costs in 2026 compare with 2025?

Changes to Medicare prescription drug coverage taking effect in 2026 include an increase to the Part D out-of-pocket limit and to the maximum Part D deductible – and negotiated prices take effect for ten high-cost medications.

Medicare Part D – prescription drug coverage

Medicare Part D – prescription drug coverage

Learn how Medicare Part D prescription drug coverage works, what it pays for, how and when to enroll, how many people have Part D. and the potential penalty for late enrollment.

Does the Medicare Part D ‘donut hole’ still exist?

Does the Medicare Part D ‘donut hole’ still exist?

As of 2025, the Medicare Part D “donut hole” no longer exists – meaning there is no longer a coverage gap during which Part D enrollees face higher drug costs. Learn how coverage works now that the 'donut hole' has been eliminated.

How has the Inflation Reduction Act affected Medicare enrollees?

How has the Inflation Reduction Act affected Medicare enrollees?

Beginning in 2023, a series of changes began to be phased in under the Inflation Reduction Act, designed to lower out-of-pocket costs, expand access to vaccines, and rein in drug price increases.

How will my Medicare prescription drug costs in 2026 compare with 2025?

How will my Medicare prescription drug costs in 2026 compare with 2025?

Changes to Medicare prescription drug coverage taking effect in 2026 include an increase to the Part D out-of-pocket limit and to the maximum Part D deductible – and negotiated prices take effect for ten high-cost medications.

Medicare Part D – prescription drug coverage

Medicare Part D – prescription drug coverage

Learn how Medicare Part D prescription drug coverage works, what it pays for, how and when to enroll, how many people have Part D. and the potential penalty for late enrollment.