Good News: Part D Donut Hole Closes in 2020
For stand-alone Part D prescription drug plans, the maximum allowable deductible for standard Part D plans will increase to $435 in 2020, up from $415 in 2019. The out-of-pocket threshold (where catastrophic coverage begins) will increase significantly, from $5,100 in 2019 to $6,350 in 2020 (the copay amounts for people who reach the catastrophic coverage level will also increase slightly in 2020).
The good news is that the Affordable Care Act has gradually been closing the donut hole in Medicare Part D. As of 2020, there will no longer be a “hole” for brand-name or generic drugs. Enrollees in standard Part D plans will pay 25% of the cost (after meeting their deductible) until they reach the catastrophic coverage threshold. Prior to 2010, enrollees paid their deductible, then 25 percent of the costs until they reached the donut hole, then they were responsible for 100 percent of the costs until they reached the catastrophic coverage threshold.
The donut hole closed one year early — in 2019, instead of 2020 — for brand-name drugs (so enrollees in standard plans paid 25% of the cost of brand-name drugs from the time they met their deductible until they reached the catastrophic coverage threshold). Now, in 2020 enrollees will pay 25% percent of the cost of generic drugs down from 37% in 2019.
Call me today for help learning how this year’s changes may affect you.
Featured Blogs
- Aging and Our Body’s Ability to Heal Itself
- Keeping Health Insurance After a Layoff
- Waking Up to the Impact of Insomnia
- How Life Insurance Benefits Women
- What experts say about raising the retirement age
- Coverage for healthcare treatment denied? Here’s what you can do.
- Sharing the Road with Cyclists
- Buying Life Insurance for an Elderly Parent?
- Medicaid Unwinding: Your Questions Answered
- Living Your Best Life After 60
- Buying Health Insurance: A Millennial’s Guide
- Self-Love Ideas for Valentine’s Day
- Life Without Clutter
- Set Yourself Up for Success with Your Fitness Routine
- Winter Hydration – Do I Need It?
- I’m 60+; Do I Need Life Insurance?
- Why Do I Keep Breaking My New Year’s Resolutions?
- Closing Out the Year with a Smile!
- How to Enjoy a Long Layover
- 6 Cold Weather Safety Tips
- 10 Tips for Managing Cholesterol Levels
- How Much Life Insurance Do You Need Right Now?
- 3 Top Tips for Better Posture
- Building Bone Density for Seniors
- Living Outside Your Comfort Zone in Retirement
- 3 Top Habits that Lead to a Happy Life After Retirement
- Should You Insure Your Gifts?
- Everything You Need to Know When Retiring Under 65
- 7 Benefits of Slow Travel
- Utilizing Medicare Preventative Services
- The Harsh Reality of Credit Card Fees
- Tips to Avoid Stress Eating
- Common Exercise Pains – How to Work Past Them and When to Call for Help
- Know the Benefits of Walking
- 4 Tips for a Less Stressful Summer
- How to Choose an In-Home Care Provider for Your Loved One in 5 Steps
- 2020 Commencement Speech Quotes for All of Us
- Is Fasting a Fad?
- 3 Vegetables You Can Plant and Grow Anywhere Right Now!
- Summer is Almost Here! Can a Couch-to-5k Running Program Get You Ready?
- Special Needs Child? Consider Survivorship Life Insurance
- The Case(s) to Buy Life Insurance for Your Child
- The Safest Vehicles to Buy in Model Year 2020