KHN reports that 48,000 Medicare beneficiaries used the new law's discount on brand-name drugs during the first two months of 2011. KHS cited the Department of Health and Human Services in noting these individuals saved a combined $38 million, or $800 on average, on the drugs.
HHS figures released also pointed out that 11,000 Medicare enrollees who reached the program's Part D prescription drug benefit's annual out-of-pocket maximum in 2011 saved $1,175, on average, because of the health reform law. HHS officials anticipate the number of Medicare beneficiaries who buy discounted drugs to increase as the year goes on.
Individuals opting for Medicare Part D drug insurance program pay a portion of prescription costs to $2,840 (including deductibles). That's when they hit the coverage gap known as the doughnut hole, at which point they must pay all drug costs until they have spent a total of $4,550 out-of-pocket for the year.
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However, beginning in 2011, beneficiaries hitting the doughnut hole receive a 50 percent discount on brand-name drugs and 7 percent discount on generic drugs to help offset the cost of prescriptions. Even with the discount, the drug's full price counts toward the $4,550 limit. The PPACA closes the doughnut hole by 2020.
"For too long, many seniors and people with disabilities have struggled to choose between paying for needed prescription medication and other necessities, like food, rent and utilities," HHS Secretary Kathleen Sebelius said in a statement about the report.
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