The Medicare doughnut hole is a gap in the new Medicare coverage plan where prescription costs fall into a loop hole of the plan and are then paid for out-of-pocket. Medicare covers 75% of prescription costs up to $2251 after a $225 deductible. After $2251, the program pays nothing until expenses reach $5,100. Once they reach $5,100, Medicare then pays for 95% of the expenses. According to the Congressional Budget Office, more than 55% of all Medicare beneficiaries are projected to have drug spending that falls in the donut hole's range.

As a result from the gap in coverage, people that are more seriously ill and need the prescriptions the most, end up paying a larger share for their prescription cost than those with fewer prescriptions. For example, WebMD says, “A senior with $1,000 in annual drug costs would pay $438 out-of-pocket under the plan, while a beneficiary with $5,000 in costs would be responsible for $3,500 of their total costs.”

An analysis by the Urban Institute shows that seniors with three chronic diseases spend an average of $3,426 per year on drugs, well within Medicare's "donut hole" gap. The gap in coverage is estimated to affect more than 55% of all senior citizens and disabled people on medicare.

The reason for the gap in coverage is because the government wanted to provide at least some coverage for beneficiaries with both low and high prescription drug costs. Although the plan has a $410 billion budget, it is still projected to fall short of the $1.2 trillion the plan will need over the next 10 years.

Is there a solution? If you happen to fall into this gap of Medicare coverage, the Washington Post recommends “switching to lower-cost alternative prescription medication that the Consumer Union have found to be safe and effective.” The Common Wealth Fund says, According to a new study, the price of prescription drugs in the United States is typically much higher than in Canada, United Kingdom, or and France. You may consider looking to a foreign or Canadian pharmacy to fill your prescription medication.The membership based website Premier Mexican Pharmacies.com helps to locate the cheapest medications from foreign pharmacies such as Mexico and Canada online, or they will refund the cost of your membership. A growing number of users have found it to be a much cheaper solution than paying outrageous prices for there prescription medication.

Visit this Consumer Advocacy website for more information on ordering from mexican pharmacy.