National Donut Day: Whatever happened to the Medicare “donut hole”?
National Donut Day is the perfect excuse to grab your favorite treat, glazed, sprinkled, filled, or classic. And while we still love a good donut, there’s one “donut” you won’t run into anymore: the Medicare “donut hole.”
While the Medicare “donut hole” hasn’t been around since January 1, 2025, we still like to celebrate donuts. And it’s a great reminder of how far retiree healthcare coverage has come.
A quick sprinkle of Medicare: What happened to the “donut hole”?
The Medicare “donut hole” was once a gap in prescription drug coverage where retirees paid more out-of-pocket after reaching a certain spending level.
Over time, changes to Medicare gradually reduced that impact and as of 2025, the coverage gap was fully eliminated and replaced with a simpler structure and an annual out-of-pocket cap.
Translation:
No more sudden cost spike in the middle of the year
More predictable prescription drug spending
A clearer, easier-to-understand benefit
The extra icing
The Medicare donut hole is officially behind us, so this National Donut Day, enjoy the treat and remember: the only donut you should be thinking about now is the one with icing on top, not a gap in your coverage.
