What does the term “donut hole” with insurances mean?

I have someone who went to fill a prescription and was told he had to pay the full amount of $200.00 because he had a “donut hole” situation. Please explain. I could not and I’m usually pretty good with insurance issues.

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3 Comments for “What does the term “donut hole” with insurances mean?”

  1. mbrcatz17

    It isn’t a real insurance term, but it means either the insurance doesn’t cover that medicine, or he has a high deductible – it’s a “hole” in his coverage.

  2. thejoker8301

    It means the patient has to pay the full cost of their medication until they meet their deductible again…once that deductible is met, their copays will drop significantly but only for a certain amount of time….

    most Medicare plans have donut holes….which sadly affects older patients and leads them to not take their medications because its so expensive…

  3. Insurance Pickle.com

    Look at a doughnut…..it’s a ZERO. It’s just a slang term meaning “zero,” “nothing,” etc….no coverage in this case. If you play the lottery you’ll end up with a “doughnut hole”…..nothing….

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