Doughnut Hole

In regard to the Medicare Part D prescription drug benefit, refers to the annual gap in coverage after both the deductible is met and 25% coinsurance applies to the next level of coverage in drug costs; then 100% of prescription costs are out of pocket up to a specified amount, and then the "doughnut hole" is ended and 95% coverage/5% coinsurance applies the remainder of the year. Under the Affordable Care Act, the doughnut hole will be phased out by 2020.