People with Medicare Part D who reach the coverage gap — also called the "doughnut hole" — in their 2010 prescription drug plan will receive a $250 rebate check. This one-time, automatic payment will help 3 million people pay for the prescription drugs they need.
The first rebate checks were mailed in June 2010. Checks will continue to be issued as more people reach the coverage gap, which occurs when an individual has spent $2,830 (“the initial coverage limit”) in total drug costs for the year. Total drug costs include the full amount you and your insurance plan spend on your drugs, including your deductible, co-payments and coinsurance, but not the amount you pay in premiums.
What you need to know about getting a check
• You do not need to do anything to receive your $250 rebate check. The check, which will be made out in your name, will be mailed to you about three months after your total drug costs for 2010 have reached $2,830.
• You don't have to do anything to prove that you and your insurance plan have paid more than $2,830 in total drug costs. Your Medicare Part D plan tracks these costs for you.