Health and Human Services Secretary Kathleen Sebelius has announced that 3 million Medicare beneficiaries have saved money on prescription medications as a result of the Affordable Care Act, via $250 rebate checks mailed to beneficiaries in the so-called "doughnut hole" coverage gap.
"For too long, many seniors and people with disabilities have been forced to make impossible choices between paying for needed prescription medication and necessities like food and rent," said Sebelius. "The Affordable Care Act offers long overdue relief by lowering prescription drug costs each year until the doughnut hole is closed."
The rebate checks are the first phase of providing relief to beneficiaries in the doughnut hole. Over the next nine years, provisions in the health reform law are expected to close the coverage gap completely. In 2011, seniors whose coverage enters the doughnut hole will receive 50 percent discounts on covered brand name medications, and Medicare will also begin paying 7 percent of the price of generic drugs.
A recent HHS analysis estimated that prescription cost savings for beneficiaries in traditional Medicare would average $3,500 over the next 10 years. Those with disabilities with high prescription drug costs could see 10-year savings that amount to $12,300.
Total savings for traditional Medicare beneficiaries are expected to be $86 in 2011, rising to $649 in 2020. For beneficiaries in the doughnut hole the savings are more pronounced: $553 in 2011 and $2,217 in 2020.