“This gap in coverage has been a huge problem for thousands of Maine seniors for years,” said Congressman Mike Michaud. “I am pleased that the new health insurance reform law contained this benefit as an initial first step toward eliminating the coverage gap permanently.”
The donut hole coverage gap is the period in the Medicare prescription drug benefit (once prescription drug costs exceed $2,830) in which the beneficiary pays 100 percent of the cost of their drugs until they hit the catastrophic coverage threshold.
The rebate checks are the first benefit from health insurance reform for seniors in the Medicare Prescription Drug program. Beginning in January 2011, seniors in the donut hole will receive a 50 percent discount on brand name drugs and by 2020 the donut hole will be completely closed.