Alert
Close

Top the Trizzle leaderboard by 5 p.m. Friday to win a $100 gift card! Learn more

HIGHLIGHTS

Close

REAL POSSIBILITIES

AARP Real Possibilities
Car buying made easy with the AARP Auto Buying Program

DRIVER SAFETY

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

Contests and
Sweeps

Safe Driving in 2014 Sweepstakes

Learn how AARP Driver Safety can help you stay safe—and enter for a chance to win $1,000. See official rules. 

Download the ipad App

AARP-iPad-ePub-app

KEEP BRAIN ACTIVE!

AARP Games - Play Now!

AARP Books

Medicare for Dummies book cover

Get the answers you need, from Patricia Barry, AARP's Ask Ms. Medicare

Most Popular

Viewed

share your Thoughts

Reader stories help us fine-tune our education efforts and strengthen our calls for action on issues that matter most to you. We read and learn from every story and may use yours (with permission) to brief legislators, inspire other readers and more. Please share your story with us. Do

Health Care Law Saves $3.9 Billion on Drug Costs

Medicare recipients in doughnut hole have benefited

En español | The Affordable Care Act has been a boon to Medicare beneficiaries, saving them more than $3.9 billion on prescription drugs, according to the Centers for Medicare & Medicaid Services (CMS).

Sign up for the AARP Health Newsletter.

woman with money up to nose, Health Care Law Saves $3.9 Billion on Drug Costs

The Affordable Care Act has helped Medicare beneficiaries pay for costly prescription drugs. — Photo by H. Armstrong Roberts/ClassicStock/Corbis

New data from CMS shows that more than 5.2 million older Americans and people with disabilities have benefited from the savings since the law went into effect March 23, 2010. More than 1 million people in the "doughnut hole" coverage gap have saved an average of $629 this year alone.

The health care law is helping seniors who are fighting to keep up with skyrocketing health care costs, says AARP Executive Vice President Nancy LeaMond. "These real savings for older Americans struggling with the ever-rising costs of prescription drugs are evidence that the Affordable Care Act is already improving the lives of millions of Americans," she says.

The saving opportunities have been rolled out in phases:

  • In 2010, individuals who hit the doughnut hole received a one-time $250 rebate.

  • In 2011, they began receiving a 50 percent discount on covered brand-name drugs and 7 percent coverage of generic drugs in the doughnut hole.

  • In 2012, coverage for generic drugs in the gap doubled to 14 percent.

  • In 2020, the doughnut hole will be closed.

Also of interest: Have your say about strengthening Medicare now.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Related Video

A look at the "Choosing Wisely" campaign by the ABIM, which suggests ways to lower health care costs by cutting back on unnecessary diagnostic treatment. Watch

Tell Us WhatYou Think

Please leave your comment below.

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Woman trying on glasses in optometrists shop

Members save up to 60% off eye exams and 30% off eyeglasses at Pearle Vision.

Prescription medication spilling out of bottle

Members get a free Rx card from AARP® Prescription Discounts provided by Catamaran.

AARP/Walgreens Wellness Bus Stops in Clarksdale, MS

Members can get exclusive points offers from Walgreens and Duane Reade.

Caregiving walking

Caregiving can be a lonely journey, but AARP offers resources that can help.