Medicare's 'donut hole' doesn't make sense to me, but since the drug companies basically wrote the Medicare Part D bill, I guess I shouldn't be surprised. Basically, once you have met your deductible, your prescription coverage kicks in until your prescription drug expense reaches a certain dollar amount. After that, you pay 100% of the cost of the drugs until you have spent another specific dollar amount and then the 'catastrophic coverage' part kicks in. However, in 2011, I think you are able to get your prescriptions for 50% off while you're in the 'donut hole'. (You meaning the generic everybody out there - not you specifically!) I don't know what the specific dollar amounts are, but I'm sure that information is on the Medicare web site.