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Who is really paying for the discount on drugs purchased in the Coverage Gap?
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The discount for brand-name drugs purchased in the Coverage Gap will be ultimately paid by the manufacturer.

Medicare (that is, the Center for Medicare and Medicaid Services) will provide monthly payments to the Part D plans for the manufacturer discounts made available to their enrollees under the Discount Program.

These payments will be calculated based on projections of non-LIS enrollees and medication use,. After the end of the contract year, CMS will reconcile the payments made against the purchases and final payments will be distributed to the plans.

 

Please note that the 7% discount on generic drugs is being paid by the plans.

 

The Explanation of Benefits (EOB) persiodically sent to you from your Medicare Part D plan provider will clearly show your drug discount in the Coverage Gap and who is paying for the discounts.


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Related FAQs In This Category
• Can you provide an example of the 2011 Donut Hole Discount?
• Will monthly Medicare Part D premiums increase due to the manufacturer’s discount on brand-name drugs purchased in the Coverage Gap?


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Customer Helpdesk

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Latest Added FAQs

For 2011 you indicate that the full retail cost of drugs while in the donut hole will apply to the amount required to get out for name brands even though I'm only paying 50%. I talked directly with Medicare and they said I will still have the same out of pocket requirements, i.e. it'll just essentially take me twice as long. Can you clarify?
The Medicare representative is correct in saying that your requirement (out-of-pocket cost limit or  . . .

My current prescription drug retail cost are $230 per month. What will be my discount in the Doughnut Hole?
If your total retail prescription medication costs are under $236, you will not exceed&nbs . . .

Can you provide an example of the 2011 Donut Hole Discount?
We have updated our 2011 PDP-Planner (or Donut Hole Calculator) to include the model plan featu . . .

Will monthly Medicare Part D premiums increase due to the manufacturer’s discount on brand-name drugs purchased in the Coverage Gap?

CBO says Yes. The Congressional Budget Office (CBO.gov) has issued the following statement:“Th . . .

I have a PACE plan, will I get the discount on brand-name drugs purchased in the Coverage Gap?
No. The manufacturer discount on brand-name drugs purchased in the Coverage Gap is applied AFTER the . . .





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