An analysis by the Department of Health and Human Services estimates that under the Affordable Care Act, average savings for those enrolled in traditional Medicare will amount to more than $3,500 over the next 10 years.
"The savings that seniors and people with disabilities on Medicare are seeing are due to critical improvements the Affordable Care Act makes to Medicare," said Assistant Secretary for Planning and Evaluation Sherry Glied. "Reducing waste, fraud and abuse, improving the quality of care beneficiaries receive and making the program more efficient all contribute to lower cost increases across the system."
According to Glied, seniors and people with disabilities who have high prescription drug costs could see savings of as much as $12,300 over the next 10 years.
The analysis, released by the Office of the Assistant Secretary for Planning and Evaluation, indicates the Affordable Care Act slows the growth of cost-sharing in Medicare. Closing the Part D coverage gap known as the "doughnut hole" will produce the greatest cost savings, it indicates.
More than 1.8 million seniors and people with disabilities who have reached the doughnut hole in 2010 have received a one-time $250 rebate, and checks will be distributed to those who enter the doughnut hole this year. In 2011, people in the doughnut hole will receive 50-percent discounts on covered brand-name Part D prescription drugs. Also starting next year, seniors and people with disabilities on Medicare will have access to recommended preventive services and annual wellness visits at no additional cost.
"The Affordable Care Act makes Medicare stronger and reduces the burden of healthcare costs on some of our most vulnerable citizens," said HHS Secretary Kathleen Sebelius. "The law improves benefits for seniors and people with beneficiaries who rely on Medicare and ensures that Medicare will be there for current and future generations by extending the life of the Medicare Trust Fund."
Total savings per beneficiary enrolled in traditional Medicare are estimated to be $86 in 2011, rising to $649 in 2020. For a beneficiary with spending in the doughnut hole, estimated savings increase from $553 in 2011 to $2,217 in 2020.