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Retirees Helped with Rx Costs through Obamcares

In 2013, the Medicare Part D drug benefit doughnut hole is from $2970 to $7720. Prior to the passage of the Affordable Care Act, when beneficiaries fell into the doughnut thole, they had to pay 100% of the costs of their prescription medications. The new health care law provides drug discounts and subsidies to help fill in the doughnut hole. In 2013, Medicare beneficiaries who fall in the Part D drug benefit doughnut hole will receive a 50% discount on the price of their brand name drugs. Beneficiaries who fall in the doughnut hole will also receive a 21% government subsidy toward the cost of generic drugs and 2.5% government subsidy toward the cost of brand name drugs. Thus, the total out-of-pocket costs (this includes what beneficiaries pay -- deductible and co-payments -- plus drug discounts) is $4750. The doughnut hole will be closed by 2020.


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