Health Under Medicare

People who fall in the Part D coverage gap would only pay half the cost of brand-name medications
n a surprise move that will please millions of Medicare beneficiaries, President Obama announced plans to cut in half the prescription drug expenses of those who fall into the Part D coverage gap, universally known as the doughnut hole. They would only pay 50 percent of the cost of brand-name medications in the gap instead of the 100 percent they must pay now.

The new benefit is expected to be part of health care reform legislation that Congress will consider later this fall. If passed, it will likely go into effect in July 2010.

This unexpected shrinking of the doughnut hole, which affects about 26 percent of Part D enrollees, is the result of a deal between the White House and the pharmaceutical industry. All drug manufacturers agreed to donate half the cost of their brand-name and biologic products (but not generic drugs) to people in the gap, at no cost to the government