Donut Holes

I actually hadn't heard about the "donut hole" in Medicare Part D until today. The way the "donut hole" works is that after your total prescription drug costs reach $2250 per year Medicare Part D simply stops paying any part of any prescription. You have to pay the next $2850 per year of your drug costs out of pocket. Then, after your total prescription costs total $5100 per year, Medicare kicks back in, thus creating a "donut hole" in your coverage.

Any sane person would ask why in the world would you write a policy this absurd. The reason is to hide the true cost of the program. In September of 2004, the White House was low balling the true cost saying this program would cost $534 billion dollars. In February of 2005, they fessed up to the fact that it might cost as much as $1.2 trillion dollars, but that figure also includes the donut hole. (All of the numbers I'm citing are over ten years unless otherwise noted.)

Now, some time around the late summer or early fall a number of seniors are going to fall in the hole, and they are going to be pissed. I can't imagine that the republicans are dumb enough not to plug the hole, which could cost as much as another $400 billion dollars. The elderly turn out to vote in droves and if this hole isn't plugged, the GOP will hemorrhage elderly voters. This plug could push the total cost to $1.6 trillion.

Medicare Part D is rapidly becoming an even more of a perfect storm than Katrina to beat over the heads of republicans. Should be some fun midterm elections.