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How will consumers' Medicare prescription drug "donut hole" be affected?

The ACA began closing the "donut hole" in 2011, and it's expected that the "donut hole" will be closed by 2020. This means that Medicare beneficiaries whose prescription drug costs are greater than the Part D deductible will need to pay only a 25% coinsurance rate until their expenditures reach the catastrophic level. The "donut hole" is being closed by combining a 50% discount on the cost of brand-name drugs and a gradual increase in the share of prescription drug costs for both generics and brand-name drugs that Medicare pays, until a beneficiary only owes 25% of the total cost.

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