Medicare prescription drug rebate

One of the new improvements in the health care reform benefiting seniors on Medicare is the closing of the “doughnut hole” in Medicare prescription drug plans according to the article on secondact.com by Mark Miller about The Medicare Prescription Drug Rebate.

The “doughnut hole” of Medicare is the coverage gap that begins when a drug plan beneficiary’s annual out of pocket spending reaches $2830.  Up until this particular point, enrollees pay 25% of their prescription cost and while in the “doughnut hole” they pay 100%.  This year 94% of Medicare drug plan enrollees are in plans that have little or no “doughnut hole” coverage.  The Affordable Care Act plans to close this hole completely.

“Doughnut hole” victims will be receiving a one-time, tax-free check for $250 as a rebate this year.  There is one exception which is low-income enrollees in Medicare’s “Extra Help” program since their coverage already protects them from the “doughnut hole”.  Eligible participants can expect to receive their rebates around 45 days after you enter the “doughnut hole”.