Definition
A gap or loophole in legislation, usually exploited by those savvy enough to notice it.
Example Usage
The prescription drug benefit had a notorious donut hole for seniors between $2,700 and $5,100 in costs.
Origin
From the literal concept of a donut having a hole in the middle.
Fun Fact
The Medicare 'donut hole' was partially filled by the Affordable Care Act, reducing out-of-pocket costs for seniors.
Source: Healthcare and legislative terminology
Related Terms
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See “Donut Hole” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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