U.S. Department of Health & Human Services
News Division
202-690-6343
FOR IMMEDIATE RELEASE
Thursday, October 25, 2012
People with Medicare save $4.8 billion on prescription drugs because of the health care law
Over 20.7 million with Medicare also receive free preventive services in the first nine months of 2012
As
a result of the Affordable Care Act, 5.6 million seniors and people
with disabilities have saved $4.8 billion on prescription drugs since
the law was enacted, Health and Human Services (HHS) Secretary Kathleen
Sebelius announced today. This year alone, 2.3 million people in the
Medicare prescription drug coverage gap known as the “donut hole” have
saved an average of $657. During the first nine months of 2012, over
20.7 million people with original Medicare got at least one preventive
service at no cost to them.
This
news comes after last month’s estimates that the health care law will
save the typical person with original Medicare $5,000 from 2010 to 2022.
“I
am pleased that the health care law is helping so many seniors save
money on their prescription drug costs,” Secretary Sebelius said.
“Medicare is stronger thanks to the health care law, offering new
benefits at no cost to seniors.”
The
health care law includes benefits to make Medicare prescription drug
coverage more affordable. In 2010, anyone with Medicare who hit the
prescription drug donut hole received a $250 rebate. In 2011, people
with Medicare who hit the donut hole began receiving discounts on
covered brand-name drugs and savings for generic drugs. For 2013, people
with Medicare in the donut hole will receive about 53 percent on the
cost of brand name drugs and a 21 percent savings for the cost of
generic drugs. These savings and Medicare coverage will gradually
increase until 2020, when the donut hole will be closed.
The
health care law also makes it easier for people with Medicare to stay
healthy. Prior to 2011, people with Medicare had to pay part of the cost
for many preventive health services. These costs made it difficult for
people to get the health care they needed. For example, before the
health care law passed, a person with Medicare could pay as much as $160
in cost-sharing for a colorectal cancer screening. Because of the
health care law, many preventive services are now offered free to
beneficiaries (with no deductible or co-pay) so the cost is no longer a
barrier for seniors who want to stay healthy and treat problems early.
In 2012 alone, over 20.7 million people with original Medicare have received at least one preventive service at no cost to them. This includes 2.13 million who have taken advantage of the Annual wellness Visit provided by the health care law – almost 650,000 more than had used this service by this point in the year in 2011. In 2011, an estimated 32.5 million people with original Medicare or Medicare Advantage received one or more preventive benefits free of charge.
For state-by-state information on savings in the donut hole, please visit: http://downloads.cms.gov/ files/Donut Hole Savings Summary - September 2012.pdf
For state-by-state information on utilization of free preventive services for people with original Medicare, please visit: http://downloads.cms.gov/ files/Preventive Services Utilization by State - September 2012.pdf
For
more information on the estimate that the average Medicare beneficiary
will save $5,000 from 2010 to 2022 as a result of the health care law,
please visit: http://aspe.hhs.gov/health/ reports/2012/ beneficiarysavings/ib.shtml
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