For many of our parents in retirement making a good amount of money causes a problem when it comes to Medicare prescription drug coverage. When most seniors spend more than $2,250 on prescriptions in a year, they enter in what's known as a "Doughnut Hole". This means seniors have gone over their Medicare coverage limit. The rest of the cost must be covered by themselves. One exception is made for seniors making less than $2100 a year. They qualify for the Circuit Breaker program. This allows seniors to pay just 20% of their prescription costs. Some seniors say the circuit break program helps make room for other expenses. Seniors spending more than $5,100 a year are able to receive a break on premiums. They only have to pay a 5% premium.
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