HOT OFF THE PRESS:
President Obama promoted the release of the first set of $250 rebate checks being sent to seniors the week of June 7 to help cover drug costs once their out-of-pocket Medicare prescription drugs expenses in 2010 exceed $2,830. Obama, at a town hall meeting at a seniors center in Wheaton, Maryland on June 8, noted more rebate checks will be sent each month to additional seniors once they reach the coverage gap under the Patient Protection and Affordable Care Act of 2010 (P.L. 111-148).
“Each month as more seniors hit the donut hole, more and more checks will hit the mail, helping more than 4 million seniors by the end of this year,” Obama said.
After reaching the initial coverage limit in 2010, seniors must pay the cost of prescription drugs out of pocket until their expenses exceed $4,550. The $250 rebate is designed to alleviate some of the drug expenses incurred by the elderly who find themselves in the donut hole. Obama noted that the donut hole will be eliminated by 2020.
The president also told seniors they are eligible for a 50 percent discount on their prescription drugs beginning in 2011. Under the reform law, if a manufacturer wants its drug to be covered under Part D of Medicare, it must agree to provide the drug at a 50 percent discount while the beneficiary is in the donut hole.
