Final answer:
The 'donut hole' is a coverage gap in Medicare Part D where beneficiaries pay more out-of-pocket for prescription drugs. The Affordable Care Act included measures to lessen this burden by offering discounts and altering coverage thresholds. Over time, reforms aim to close this gap, reducing costs for Medicare recipients.
Step-by-step explanation:
The concept of the 'donut hole' refers to a gap in prescription drug coverage under Medicare Part D. It is a phase of coverage in which beneficiaries have to pay a larger share of their medication costs, after their total drug expenses reach a certain limit but before reaching the catastrophic coverage threshold. In recent healthcare reforms, there have been changes to address this issue. The Affordable Care Act, also known as Obamacare, aimed to provide all Americans with access to affordable health insurance and included measures to lower the costs of healthcare, including prescription drugs. Subsequent changes have focused on closing the donut hole by offering discounts and altering the thresholds and percentages that define the coverage gap.
Over time, legislative measures have been implemented to reduce the financial burden placed on Medicare beneficiaries during this coverage gap. This has included providing discounts and gradually increasing the percentage of drug costs that Medicare covers until the donut hole is effectively closed. These reforms have been important in reducing out-of-pocket expenses for the elderly and disabled, who are often on multiple medications.