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July 30, 2006


Mark C. Foley

A quick note: As most news stories and Dr. Miron's pithy comment state, the donut hole is defined as the level from $2250 to $5100 ("until the bill reaches $2,250" .. note "bill" is generic ... whose bill?!). However, I believe it would be more correct to say that the donut hole starts at $2250 TOTAL BILL, counting both that paid out of the customer's pocket AND by the customer's insurance plan. In other words, it is *not* correct to infer that a senior pays $5100 - $2250. They pay $5100 - OOP, where OOP < $2250 and OOP = their personal out-of-pocket.

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