How is the Medicare Part D coverage gap commonly referred to?

The Medicare Part D coverage gap is commonly referred to as "the donut hole." This term describes a specific phase within the Medicare Part D prescription drug benefit in which beneficiaries experience a temporary limit on what the drug plan will cover for their prescription medications. After a beneficiary and their plan have spent a certain amount on covered drugs, they enter this gap where they must pay a larger share of their medication costs out-of-pocket until they hit the threshold for catastrophic coverage.

Understanding the "donut hole" is crucial for beneficiaries, as it highlights the potential financial burden during this phase of coverage. This term has become well-known in discussions about Medicare Part D and is essential for comprehending how costs are structured throughout the coverage year. Other terms, such as "payment gap," "coverage limit," or "prescription gap," do not specifically capture the nature of this phase and lack the recognition associated with the "donut hole" terminology in Medicare discussions.