Medicare Beneficiaries Getting Checks for Uncovered Drug Costs

Written by Leigh Page | June 10, 2010

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As part of the health reform law, Medicare Part D beneficiaries with large drug payments are getting $250 checks from CMS to cover a previous gap in Medicare payments, dubbed the "donut hole," according to a report by the Arizona Star.

The donut hole payments go to 80,000 Part D beneficiaries who have spent more than $940 in out-of-pocket expenses this year for prescription drugs.

The reform law will begin to close the gap in 2011, providing a 50 percent discount to beneficiaries whose out-of-pocket spending reaches the doughnut-hole level.

The discount will ramp up to a 75 percent level on brand name drugs by 2020, bringing beneficiaries' portion of the bill back down to 25 percent, which is the standard coverage level.

Read the Arizona Star report on health reform.

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