If you reach the Coverage Gap, you will receive a 75% discount on all of your Medicare
Part D plan's formulary drugs. The
Donut Hole Discount has increased over the past years, but should remain at a 75% discount in the future.
Question: So will my drug costs always be less in the Donut Hole?
No. Depending on your Medicare Part D plan, the medications you use, and the retail price of your medications - you may find that you pay more for drug coverage when you reach the Donut Hole and you can see a few examples in our FAQ: "
Will my drug cost increase when I enter the Donut Hole?"
Question: What happens when you no longer pay your plan premium?
If you do not pay your premium, you can be involuntarily disenrolled from your Medicare plan - and you may be without Part D coverage for the remainder of the year - and then you could be subject to a permanent late-enrollment penalty should you ever decide to re-join a Medicare Part D plan. So naturally, we do not recommend that you stop paying your Medicare Part D premiums.
More about the late-enrollment penalty
If you are without prescription drug coverage for more than 63 days, you will also be subject to a permanent premium penalty for each month you are without creditable prescription coverage. You can read more about the late-enrollment premium penalty here:
Q1FAQ.com/590 ("How do I calculate my Medicare Part D Late Enrollment Penalty?")