Affordable Care Act Saved Medicare Beneficiaries $20 Billion
CMS says the Affordable Care Act has made Medicare prescription drug coverage much more affordable than in recent years.
By - The Affordable Care Act (ACA) has saved over 10 million Medicare beneficiaries upwards of $20 billion on prescription drugs over the past six years, according to new information from the Centers for Medicare & Medicaid Services (CMS).
Millions of seniors and the disabled with Medicare are continuously saving money on prescription drugs, announced the Department of Health and Human Services (HHS).
CMS said the ACA “makes Medicare prescription drug coverage more affordable by gradually closing the gap in coverage where beneficiaries had to pay the full cost of their prescriptions out of pocket, before catastrophic coverage for prescriptions took effect.”
Echoing last year’s announcement, CMS said this gap, referred to as the “donut hole,” will be closed by 2020.
Under the ACA, anyone with a Medicare prescription drug plan in 2010 who hit the “donut hole” was paid a $250 rebate.
Beneficiaries in the “donut hole” saved money the following year on covered brand-name and generic drugs, CMS explained.
In 2016, individuals with Medicare Part D who fall under the “donut hole” will receive discounts and savings totaling 55 percent for the cost of brand-name drugs and 42 percent for the cost of generic drugs.
Since the ACA’s implementation, a total of 10 million Medicare beneficiaries have received prescription drug discounts, CMS confirmed. Total savings reportedly top $20 billion — or an average of $1,945 per beneficiary.
Last year, over 5 million seniors and the disabled saved over $5.4 billion alone, CMS said.
Medicare beneficiaries are also utilizing many recommended preventive services without coinsurance, CMS stated.
CMS estimated over 39 million people last year, including those enrolled in Medicare Advantage, took advantage of one or more preventative services without copays or deductibles.
This number is “slightly more” than the year before, CMS said.
And nearly 9 million Medicare beneficiaries last year, including Medicare Advantage enrollees, reportedly partook in an Annual Wellness Visit.
"Medicare consumers are now more engaged and empowered in their own health thanks to the Affordable Care Act," said Andy Slavitt, CMS’s Acting Administrator.
”Millions are now able to access more affordable prescription medicine for their chronic conditions and millions more are staying healthier by accessing preventive services, especially vital for people living with disabilities or growing older."
