Seniors who fell into the Medicare Part D “donut hole” may receive a non-taxable rebate of up to $250. Checks will continue to be mailed monthly over the next several months to seniors as they enter the coverage gap.
“The checks are just the first benefit for our seniors from the health reform legislation we passed in March,” said U.S. Congressman Gregorio Kilili Camacho Sablan.
“Beginning in January 2011, seniors in the Medicare Prescription Drug program, who fall into the so-called ‘donut hole’ will receive a 50 percent discount on brand name drugs. By 2020, the donut hole will be completely closed.”
Seniors fall into the “donut hole” when they spend between $2,700 and $6,154 per year on prescription medicine.
This level of spending falls outside the traditional Medicare Part D coverage for medications, but not up to the “catastrophic care” level also covered.
The Patient Protections and Affordable Care Act passed this year by congressional Democrats and signed into law by President Obama makes changes each year to close this donut hole by 2020. In the meantime, those seniors whose medication costs exceeded $2,830 per year and who are not considered “dual eligible” by CMS should receive a rebate of up to $250.
“Prescription drugs cost many of our manamko’ thousands of dollars a year. This check is a down payment on reducing prescription drug costs for seniors and eventually closing the donut hole altogether,” Congressman Sablan said.
“This is just the first example of how the healthcare reform bill will strengthen Medicare and help seniors.”
Medicare recipients don’t have to do anything to get the $250 check — once their drug costs for the year hit $2,830 the one-time check will be issued automatically.
Making prescription drugs more affordable for seniors is only one of the many benefits for seniors included in the recently enacted health reform law. Other benefits for seniors include free preventive care services under Medicare, beginning in 2011.
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