Program to Close the Coverage Gap Moves Forward

People with Medicare who enter the Part D prescription drug coverage gap, also known as the “doughnut hole,” in 2011 will automatically receive a 50 percent discount on brand-name drugs and biologics at the time they purchase their medicines, according to final guidance released by the Centers for Medicare & Medicaid Services (CMS) on May 12, 2010. CMS expects that all drug manufacturers will enter into discount agreements, which effectively means that the discount program will not change the brand-name drugs and biologics that are covered under Part D.