Unfortunately this blog is not paying tribute to the delicious tiny fried bread balls that we adore so much. The "donut hole" is a second name for the prescription drug coverage gap. During this gap many Medicare eligibles have limited or no prescription drug coverage. But the Affordable Care Act is taking action to closing this gap.
Many people would argue that the implemented health care reform, otherwise known as the Affordable Care Act (ACA), caused more damage among the nation than good. Conversations about the ineffectiveness of the program and the use of funds to make this program possible, makes headlines even to this day. But recently, The Department of Health and Human Services, released new information, that showed how millions of Medicare beneficiaries collectively saved billions of dollars on prescription drugs.
Almost 10.7 million Medicare beneficiaries have received $20.8 billion in discounts on their prescription drugs. This amount averages to about $1,944 per individuals since the Affordable Care Act was enacted.
How ACA is affecting the “Donut Hole”
The Affordable Care Act has made prescription drugs more affordable for seniors, thus gradually closing the gap. This gap, also known as the “donut hole”, has decreased since the implementation of the Affordable Care Act.
In 2010, the health care law proposed that anyone who reached the donut hole would receive a $250 rebate and in 2011 beneficiaries also began to receive discounts on brand-name and generic drugs. Ultimately, the goal is to completely close the gap by 2020.
The future is looking bright for those who have struggled paying for their prescriptions as the savings will continue to increase in 2016.
What does Part D cover?
Read the "New to Medicare Guide 2016: How to get started" to find out