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AARP Iowa, July 15, 2010
More than 3 million Americans fall into the dreaded “doughnut hole” each year. Are you – or a family member – already in the hole?
In June, the U.S. Department of Health and Human Services (HHS) mailed 70,000 seniors in Medicare who had reached the prescription drug coverage gap $250 rebate checks to help with their drug costs and other expenses, as part of the new health care reform law. In July, a second round of approximately 300,000 checks were mailed to Americans how had fallen into the coverage gap, and checks will continue to be mailed out through 2010 as more people reach the doughnut hole.
Making Medicine More Affordable
“These rebate checks are the first step to gradually close the Medicare prescription drug doughnut hole – and help make prescription drugs more affordable for people in Medicare,” says Bruce Koeppl, AARP Iowa state director.
Research shows that people who have trouble paying for their prescription drugs are more likely to skip doses or stop taking their medications altogether. This can lead to more serious health problems and higher long-term costs both for them and the health care system as a whole.
Closing the Gap
Starting in 2011, people who reach the Medicare prescription drug doughnut hole will receive a 50 percent discount on all brand name and biologic drugs, and a seven percent discount on generics. Over 10 years, more discounts will be applied for both brand and generic drugs until the coverage gap completely closes in 2020.
What You Need to Know
Five facts that people in Medicare should know about the rebate check and their prescription drugs:
Get the Facts
To learn more – or ask questions – visit aarp.org/getthefacts, AARP’s web page devoted to providing information about the health care reform law.
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