More than 5,300 elderly or disabled Mainers have saved more than $4 million in drug costs during the first half of this year as the federal government closes a Medicare coverage gap, dubbed the “donut hole,” the Centers for Medicare and Medicaid Services said this week.
Since it was implemented in 2006, Medicare’s drug plan has had a doughnut hole — covering prescription medications up to a certain dollar amount, then paying nothing until the Medicare recipient spends a certain amount.
The 2010 Affordable Care Act gradually changes that. In 2010, Medicare recipients who reached the doughnut hole received a $250 rebate. In 2011, they started getting discounts on drugs.
Savings and coverage are slated to gradually increase until 2020, when the gap will be closed.
This year, recipients who reach the doughnut hole receive both discounts and increased coverage.
According to the Centers for Medicare and Medicaid Services, Mainers with Medicare have saved nearly $35 million since 2010. During the first half of this year, 5,321 Mainers saved nearly $4.2 million, an average of $784 each.
Advocacy groups were among those to applaud the news this week.
“This shows that the Affordable Care Act is working and not just for the thousands of Mainers who got plans on the marketplace, but also for people on Medicare, too,” said Emily Brostek, associate director for Augusta-based Maine Consumers for Affordable Health Care.
Lori Parham, state director for AARP Maine, agreed.
“It’s good. Could it be better? Absolutely. But we know this takes some of the financial pressure off those who are looking to make ends meet,” she said.
Even with the savings, prescription drug prices remain a concern for Mainers. A 2014 AARP survey of Maine voters 50 and older showed that 80 percent are likely to vote for candidates working to ensure that older Mainers have access to affordable prescription drugs — a greater percentage than those who wanted candidates working to help older Mainers stay in their homes, have a financially secure retirement or get around town safely.
Overall, according to the Centers for Medicare and Medicaid Services, 1.6 million Americans have saved more than $1.3 billion in the first six months of this year. About 8.2 million Americans on Medicare have saved nearly $11.6 billion since 2010, an average savings of $1,407 each.
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