US states may end aid for Part D "donut hole"

Six US states are reported to be debating cuts or the outright abolition of financial assistance to seniors who reach the coverage gap in the  Medicare Part D prescription drug benefit (the "donut hole;"  Marketletters passim). According to the Associated Press, a total of 16  states provide some form of support for affected people. In the current  fiscal year, the coverage gap takes effect when total spending on  prescription medicines reaches $2,100 and is less than the "catastrophic  coverage" threshold of $4,350.

In the northeastern USA, both Rhode Island and Vermont's state Governors  have proposed to scrap "donut hole" assistance, while neighboring  Massachusetts has made cuts to its program. In contrast, Connecticut and  New York have considered and rejected any reduction in support. Further  south, the legislature in South Carolina has a plan under consideration  to end subsidies for patients reaching the coverage gap.