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Closing the Doughnut Hole


 

One of the first provisions of the Patient Protection and Affordable Care Act to take effect is the $250 rebate for Medicare beneficiaries who fall into the Part D doughnut hole. The first rebate checks were mailed on June 10. The rebates are the first step in a multiyear effort to trim drug costs for seniors and other Medicare beneficiaries.

Next year, patient cost sharing for brand-name drugs will be cut in half, and the doughnut hole will be closed completely by 2020.

Just as checks started hitting seniors' mailboxes, the administration launched a $1 million radio ad campaign designed to help patients protect themselves from fraud, as criminals launch scams targeted at the new benefits.

Marilyn Tavenner, acting administrator at the Centers for Medicare and Medicaid Services, answered questions about how the new benefit will be implemented.

Ms. Tavenner: About 8 million Medicare beneficiaries are expected to reach the prescription drug coverage gap that we call the doughnut hole this year. Of those, 4 million will be eligible to get a tax-free, one-time rebate check. The remaining beneficiaries already receive assistance through Medicare Extra Help. Beneficiaries who hit this coverage gap do not need to fill out any form, or make any phone call, to receive this benefit under the Affordable Care Act. The one-time $250 rebate checks will be mailed automatically to seniors' homes from Medicare when they enter the doughnut hole. The first rebate checks were sent in June, and checks will be sent each month throughout this year as more beneficiaries enter the doughnut hole.

RN: Will the $250 rebate have a significant impact on patients' out-of-pocket drug costs this year?

Ms. Tavenner: The $250 rebate is immediate relief that marks the first step in completely eliminating the doughnut hole. This year's rebate will help put money back in the pockets of seniors who are too often forced to choose between paying for their groceries or for their medications. Next year, seniors who reach the coverage gap will get a 50% discount on brand-name drugs that will help reduce their costs. Also, under the new law, the actual coverage gap will get smaller and smaller every year, until it completely disappears in 2020.

RN: Physicians in all specialties spend a lot of time helping patients find affordable medications. How will these changes decrease the burden on doctors?

Ms. Tavenner: Physicians are on the front lines in helping seniors obtain medications that are not only successful in treating the patient, but are also affordable. By closing the coverage gap and making care more affordable, Medicare beneficiaries will be able to get the care they need and deserve. And starting next year, patients with Medicare can get free preventive care services like colorectal cancer screening and mammograms. Medicare also will cover an annual physical, where they can work with their physician to develop a personal prevention plan based on current health needs.

RN: How can physicians help their patients to take advantage of this benefit?

Ms. Tavenner: Doctors can educate patients about the benefits of the Affordable Care Act. If patients have questions on their rebate checks, they can call 1–800-Medicare or visit www.medicare.govwww.healthreform.gov

Patients should never give their Medicare ID number to anyone promising benefits or discounts under the new law. For fraud-fighting tips, please visit www.stopmedicarefraud.gov

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