In 2010, as part of the Affordable Care Act, the United States Department of Health and Human Services (HHS) automatically sent a one-time, tax-free $250 rebate check to all Medicare beneficiaries who were enrolled in a Medicare Part D plan and who reached the Coverage Gap (also known as the “Donut Hole” or “Doughnut Hole”) portion of their Medicare prescription drug plan.
If a Medicare beneficiary was receiving any “Extra Help” from Medicare and Social Security, they were not eligible for the $250 rebate check - because Extra Help recipients do not have a Donut Hole in their Medicare Part D plans.
You will reach the Coverage Gap or Doughnut Hole phase of your Medicare Part D prescription drug plan when the retail price of all of your covered prescription purchases exceeds your Medicare Part D plan's Initial Coverage Limit. In 2010, most Medicare Part D plans had an Initial Coverage Limit of $2,830, but this value could vary depending on the chosen plan. So, in 2010, if your monthly retail prescription drug costs were below $235, you most likely never reached the 2010 Doughnut Hole (unless your Part D plan has lower initial coverage limits) and did not receive the $250 rebate check.
Medicare beneficiaries did not need to take any action or file any forms to receive their $250 rebate check. The $250 rebate was mailed automatically to all qualifying Medicare beneficiaries.
CAUTION: Medicare anticipated "scams" that would ask people to complete a form before receiving their rebate check. Please always be cautious of anyone asking for any of your personal information such as Medicare Claim number, Social Security number, or bank information. When in doubt, telephone Medicare at 1-800-633-4227 before submitting any personal information.