“Thanks to the health care law, millions of people with Medicare have been paying less for prescription drugs,” said CMS Acting Administrator Marilyn Tavenner. “The law is helping people with Medicare lower their medical costs, and giving them more resources to stay healthy. By 2020, the donut hole will be fully closed thanks to the Affordable Care Act.”
Nationwide, since the Affordable Care Act was passed, more than 5,254,000 people with Medicare have saved over $3.7 billion on prescription drugs in the donut hole. This includes new data for the first five months of 2012, when more than 745,000 people with Medicare saved an average of $651 on the prescription drugs, for a total of $485.3 million in savings.
These savings are automatically applied to drugs that people with Medicare purchase, after they hit the Medicare Part D prescription drug coverage gap or “donut hole.”
People with Medicare who hit the donut hole in 2010 received a one-time $250 rebate. In 2011, people with Medicare began receiving a 50 percent discount on covered brand name drugs and 7 percent coverage of generic drugs in the donut hole. This year, Medicare coverage for generic drugs in the coverage gap has risen to 14 percent. Coverage for both brand name and generic drugs in the gap will continue to increase over time until 2020, when the coverage gap will no longer exist.
For more information on how the Affordable Care Act closes the Medicare drug benefit coverage gap “donut hole,” please visit: http://www.healthcare.gov/law/
For State-by-State information on the amount of savings people with Medicare have received in the donut hole, please visit: https://www.cms.gov/Plan-
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