Coverage in Part D Gap Limited in 2007

The Washington Post reports that coverage in the Part D "donut hole" may be more limited in 2007 than it was in 2006. According to Families USA, a non-profit advocacy organization, it will be more difficult for beneficiaries to find plans which include gap coverage - 13 states will not have a single plan offering donut hole coverage for brand name medications, as compared with just 4 in 2006. Medicare officials point out that donut hole coverage for generics will be available in all states, but 18 of the 25 most commonly prescribed Part D drugs are not yet available in generic form. Furthermore, premiums for those plans which do offer coverage for brand name drugs in the gap will increase by 87% to an average of $103.40 per month - a significant increase for those beneficiaries who take brand-name-only drugs.

For more information about the Part D coverage gap, see my article on Part D Basics.