I was told by a Medicare plan representative that all of their 2016 Medicare drug plans had a Donut Hole coverage. Is that possible?

Yes, if the plan representative was referring to the 2016 Donut Hole discount that applies to generic and brand-name drugs.

All 2016 Medicare Part D prescription drug plans (PDPs and MAPDs) can take advantage of the Donut Hole discount that provides a 55% discount (you pay 45% of retail) on all brand name purchases in the Coverage Gap or a 42% discount (you pay 58% of retail) on generic drugs purchased in the Coverage Gap.

For example, if you are using a brand-name brand name drug that has a retail cost of $250 and enter the 2016 Donut Hole or Coverage Gap, you will pay 45% of the retail price for your brand-name medications – assuming that your Medicare prescription drug plan does not provide any coverage in the Donut Hole. Even better, you will receive a credit of 95% of the retail cost toward meeting your total out-of-pocket limit of $4,850. This means that if you reach the 2016 Donut Hole and purchase a $250 brand-name medication, you will receive a 55% drug discount, pay $112.50, and get 95% of the retail price or $237.50 credited toward meeting your $4,850 out-of-pocket limit.

You can click here to read more about the 2016 Donut Hole discount.

In addition to the Donut Hole discount, some Medicare Advantage plans that include prescription drug coverage (MAPDs) provide additional coverage for drug purchases made in the Donut Hole and the Donut Hole discount is applied to the plan’s Donut Hole coverage.