In 2026, Medicare Part D continues to offer simplified prescription drug coverage. The coverage gap, commonly known as the “donut hole,” remains eliminated.
Now, after meeting your plan’s deductible (which can be up to $605 in 2026), you enter the initial coverage phase, where you pay a portion of your prescription costs.
Once your out-of-pocket expenses reach $2,000, you’ve hit the annual maximum, and your plan covers 100% of your covered prescription drug costs for the rest of the year.
This means that your deductible still plays a role in your initial out-of-pocket spending, but the previous “donut hole” no longer exists.
These updates aim to make your prescription drug costs more predictable and manageable throughout the year.