The Donut Hole

From the archives: the percentage of total drug costs costs paid out-of-pocket by a typical Medicare beneficiary under the Bush Part D plan:

And that’s how it’s designed to work; in practice, it’s even worse.

Note: The section of the graph where the percent out of pocket actually increases as drug costs increase is the infamous donut hole–after the beneficiary spends $2250 on prescription drugs they pay the full cost of the next $2850 before coverage resumes.