Medicare Part D “Donut Hole”

What is the Part D “Donut Hole”?

To understand the Part D “Donut Hole,” you must first realize that traditional Medicare (Part A and B) doesn’t cover your prescription costs. Medicare Part D was set up to cover SOME of the cost of drugs you purchase at the pharmacy. Did you see how we wrote SOME in all caps? That’s because Part D will not cover ALL your Rx costs. There are still deductibles and coinsurance under Part D.

The Donut Hole is nickname for the period when drugs are not covered at the full amount under your Part D plan. It is also called the coverage Gap.  The good news is that during this Donut Hole period you can still buy the drugs at a discount.  

This changed in 2025. For the latest version, check out our full guide on “Medicare Part D.”

💡 Quick tip: We don’t process Medicare Part D applications, but we’ve made a guide to help. Our team remains focused on Medigap.