The donut hole was a coverage gap for prescription drugs in Medicare Part D. In 2025, it was replaced by a new spending cap of $2,000, after which you won’t pay out of pocket for drugs anymore.

The donut hole described a gap in prescription drug cover for people with Medicare Part D. In 2024, the donut hole was replaced with a spending cap.

The donut hole limited how much insurance providers contributed to drug costs, increasing out-of-pocket costs. When your spending reached $8,000, it triggered “catastrophic coverage.” ...