The "donut hole" refers to a coverage gap in Medicare Part D. This year, the "donut hole" provides no reimbursement for drug costs between $2,700 and $6,154. After deductibles are covered, Medicare covers 75 percent of prescription drug costs up to $2,700. All costs above $6,154 receive 100 percent coverage. The deal with drug makers will provide name-brand prescription drugs at half price or cheaper to the roughly 3.5 million Medicare beneficiaries projected to fall into the "donut hole" this ye... It's guaranteed any drug co. will raise their premiums. I'll have to pay more taxes on Medicare and SS. They won't lose anything. I for one will be paying more because those here illegally or whoever DON'T want to pay for insurance.