Adding coverage for generic drugs during the "doughnut hole" in theMedicare prescription drug benefit could help offset a decreased use of medications during the period, according to Health Affairs.  Under the Medicare drug plan, beneficiaries have an initial $250 deductible for prescriptions, then a 25% co-payment until they reach $2,250 in payments.

At this point, the doughnut hole takes effect and requires that beneficiaries pay full price for drugs until costs have reached $5100, where catastrophic coverage takes effect and about 95% of costs are covered by Medicare. Medicare drug beneficiaries often decrease their use of medications to avoid having to pay for medications upon reaching the doughnut hole coverage plateau.