Study: the closing of the donut hole increased the use of prescription drugs by Medicare enrollees. It also looks like there was more substitution of branded drugs for generics.
Study: the closing of the donut hole increased the use of prescription drugs by Medicare enrollees. It also looks like there was more substitution of branded drugs for generics.
Closing the so-called donut hole was just another way to buy votes. Some people told me they didn’t understand the donut hole. I told them I thought it was brilliant. It was a way to create a benefit for seniors in every circumstance while making Medicare Part D coverage affordable and a good value. Medicare Part D paid 75% of the first $1250 after a low $250 deductible. Then there was a coverage gap of $5,000 before the plan paid 95% of drugs beyond that. That allowed seniors with little spending to still find value in the plans and gave seniors with extensive send good coverage. That also gave drug cos. an incentive to keep drugs affordable. Now we see the results. Seniors lost the incentive to avoid the donut hole by buying generic drugs.