Congressman Faleomavaega today commended Secretary Sebelius and the Department of Health and Human Services (DHHS) for their hard work to implement the Patient Protection and Affordable Care Act (PPACA). DHHS recently announced that 9 Medicare beneficiaries in American Samoa, and three million people nationwide, have received prescription drug cost relief through the Affordable Care Act. These eligible beneficiaries have been mailed a one-time, tax-free $250 rebate check.
“One of the objectives of the Affordable Care Act is to help seniors and Medicare beneficiaries pay for prescription drugs by providing cost relief to eligible beneficiaries in the States and the Territories, and I want to acknowledge the efforts of my fellow colleagues who worked together to ensure that the Territories were included in this historic legislation, especially the Territorial Delegates,” Faleomavaega said. “I also want to commend Secretary Sebelius for her leadership and DHHS for its work in implementing these provisions of the Act.”
The seniors who will benefit from these provisions are those who fall into the coverage gap, known as the donut hole. Covering this gap has remained a problem for many years and is one of the many issues that the Act addresses.
These rebate checks are only the first step in how the Act will reduce prescription drug costs for beneficiaries in the donut hole each year until the gap is closed in 2020. Following this first phase of implementation, this year Medicare will offer a 50-percent discount on covered brand name medications and begin paying 7-percent of the price for generic drugs for eligible beneficiaries in the donut hole.
“For a fuller description of how the program works, I am including a press release issued by HHS and, once more, I want to thank my colleagues in Congress, especially the other Territorial Delegates, for working together to make sure that those living in the Territories will continue to benefit from the many provisions of the Patient Protection and Affordable Care Act that have yet to take effect,” Faleomavaega concluded.
Sebelius announces 9 Medicare beneficiaries in American Samoa have received prescription drug cost relief under the Affordable Care Act
Implementation of the Affordable Care Act making Medicare stronger for beneficiaries
U.S. Department of Health and Human Services Secretary Kathleen Sebelius today announced that 9 Medicare beneficiaries in American Samoa, and three million people nationwide, have received prescription drug cost relief through the Affordable Care Act. To date, three million eligible beneficiaries who fell into the drug coverage gap known as the “donut hole” during 2010 have been mailed a one-time, tax-free $250 rebate check.
“For too long, many seniors and people with disabilities have been forced to make impossible choices between paying for needed prescription medication and necessities like food and rent,” said Secretary Sebelius. “The Affordable Care Act offers long overdue relief by lowering prescription drug costs each year until the donut hole is closed.”
Eligible beneficiaries who fell into the coverage gap during 2010 are continuing to automatically receive rebate checks. These checks are only the first step in how the Affordable Care Act will reduce prescription drug costs for beneficiaries in the donut hole each year until it is closed in 2020. Starting this year, eligible beneficiaries in the coverage gap will receive a 50-percent discount on covered brand name medications while in the donut hole. In addition, in 2011 Medicare will begin paying 7-percent of the price for generic drugs during the coverage gap.
Also today, Secretary Sebelius released a new video message on the new benefits the Affordable Care Act provides in 2011 for people on Medicare. You can watch the video message here.
The closing of the donut hole is just one of the ways seniors benefit from the Affordable Care Act. In addition to savings on prescription drugs, the law provides new benefits to Medicare beneficiaries when they visit their doctor starting this year:
As of January 1, 2011, Original Medicare no longer charges out-of-pocket costs for the “Welcome to Medicare” physical exam and, for the first time since the Medicare program was created in 1965, Original Medicare now covers an annual wellness visit with a participating doctor, also at no cost.
In addition to these annual wellness visits, most people with Medicare can now receive critical preventive services, including certain cancer screenings such as mammograms and colonoscopies, for free.
Also this year, the Affordable Care Act will provide qualifying doctors and other health care professionals providing primary care to people on Medicare a 10-percent bonus for primary care services. This will help ensure that those primary care providers can continue to be there for Medicare patients.
People with Medicare can learn more about these new benefits, search for participating doctors in their area, and find other helpful information by contacting a trained customer service representative toll-free at 1-800-MEDICARE (1-800-633-4227) or visiting www.Medicare.gov
Additionally, the Affordable Care Act makes Medicare stronger and more secure for all beneficiaries. These provisions under the new law increase benefits to beneficiaries and help to extend the life of the Medicare Trust Fund by 12 years.
An analysis issued by the Department of Health and Human Services estimates that under the Affordable Care Act, average savings for those enrolled in traditional Medicare will amount to more than $3,500 over the next 10 years. Savings will be even higher – as much as $12,300 over the next 10 years – for seniors and people with disabilities who have high prescription drug costs. Total savings per beneficiary enrolled in traditional Medicare are estimated to be $86 in 2011, rising to $649 in 2020. For a beneficiary in the donut hole, estimated total savings increase from $553 in 2011 to $2,217 in 2020.
The Affordable Care Act establishes a new Innovation Center that will research, develop, test, and expand innovative payment and delivery arrangements to improve the quality and reduce the cost of care provided to patient with Medicare, Medicaid or Children’s Health Insurance Program (CHIP) coverage. Innovations that are found to work can be rapidly expanded and applied more broadly—helping to transform the health care system into one that provides better care at lower cost.
The Affordable Care Act contains important new tools to help crack down on criminals seeking to scam seniors and steal taxpayer dollars. The law strengthens the screenings for health care providers who want to participate in Medicare, Medicaid, or CHIP, enables enforcement officials to see health care claims data from around the country in a searchable database, and strengthens the penalties for criminal wrongdoing. The reduction in waste, fraud, and abuse returns savings to the Medicare Trust Fund to strengthen the program into the future. Seniors are encouraged to contact 1-800-MEDICARE to report any solicitations of personal information or suspected fraud, waste, or abuse, or go to www.StopMedicareFraud.gov
For more information on how the Affordable Care Act benefits seniors, visit www.HealthCare.gov.