Health Reform Saved Medicare Recipients $3.4 Billion This Year

The Affordable Care Act has already saved Americans on Medicare more than $3.4 billion on prescription drugs so far this year, according to the Centers for Medicare and Medicaid Services (CMS). The benefits came from changes to the so-called “donut hole,” the gap in drug coverage for older Americans which would require them to pay for many medications out of pocket. Thanks to the health care law, coverage of generic medications in the donut hole will increase until 2020, when the gap will be closed. On average, more than 220,000 people have saved an average of $837 so far this year on prescription drugs purchased in the donut hole. In all of 2010 and 2011, over 5 million Americans saved $3.2 billion on prescription drugs. In addition, CMS reported that 8.9 million Medicare recipients have received at least one preventive service free of charge. 32.5 million received free preventive services last year.

Zachary Bernstein