The donut hole no longer exists in Medicare Part D as of 2025. Previously, beneficiaries would enter a coverage gap after reaching a certain spending limit on prescriptions. In that phase, they paid a larger share of drug costs until reaching catastrophic coverage.

Starting in 2025, a new out-of-pocket cap replaced the old donut hole structure. For 2026, once your spending on covered Part D drugs hits $2,050, you will no longer pay anything for the rest of the year. This change makes drug costs more predictable and removes the financial burden many faced during the coverage gap.

There’s no longer a separate phase where your cost-sharing increases mid-year. The new structure ensures that once you hit the cap, you’re protected from further costs on covered drugs.

This is a major improvement for Medicare beneficiaries and means better access to medications without the worry of hitting a high-cost gap in the middle of the year. Always review your plan to ensure your prescriptions are covered and your pharmacy is in-network.