02-02-12
Washington, DC
Health
reform law saves $2.1 billion for 3.6 million
Americans with Medicare
Nearly 3.6
million people with Medicare saved $2.1 billion
on their prescription drugs in 2011 thanks to
the Affordable Care Act according to data issued
today by the Department of Health and Human
Services (HHS). Savings for people with Medicare
will increase over time. According to a new
report issued today from HHS, the average person
with Medicare will save nearly $4,200 by 2021
because of the new law.
“The Affordable
Care Act is already saving money for millions of
Americans with Medicare,” said HHS Secretary
Kathleen Sebelius. “As we move forward, we will
close the donut hole completely and save even
more money for everyone with Medicare.”
The Affordable
Care Act provides a 50 percent discount on
brand-name prescription drugs and this year, a
14% discount on generics. Last year, it provided
a seven percent discount on covered generic
medications for people who hit the prescription
drug coverage gap known as the donut hole, with
2,814,646 beneficiaries receiving $32.1 million
in savings on generics.
In 2011, the 3.6
million Americans who hit the donut hole saved
an average of $604 on the cost of their
prescription drugs.
Data also show
that women especially benefitted from the law’s
provision with 2.05 million women saving $1.2
billion on their prescription drugs.
By 2020, the
donut hole will be closed completely. The new
report released today by the Department of
Health and Human Services finds that this
provision and other features of the health
reform law will generate substantial savings for
people with Medicare. Typical Medicare
beneficiaries will save an average of nearly
$4,200 from 2011 to 2021. People with high
prescription drug costs could save as much as
$16,000.
The savings are a
product of provisions in the Affordable Care Act
and other cost trends that:
-
Decrease
prescription drug costs for seniors
-
Make
preventive services like mammograms free for
everyone in Medicare
-
Reduce growth
in Part B premiums (for physician services)
-
Reduce growth
in cost-sharing under both Parts A (hospital
care) and Part B.
These
announcements come one day after HHS announced
that in 2012, Medicare Advantage premiums have
fallen by seven percent on average and
enrollment has risen by about 10 percent since
last year. For more details on that
announcement, visit
