rssObama Tackles Medicare’s Donut Hole
Monday, June 22, 2009 at 2:44 pm
- 16 Comments
President Obama today made official an $80 billion deal with the pharmaceutical industry to cut prescription drug costs for the nation’s seniors.
As it is, Medicare patients are forced to pay the full cost for their prescription drugs when annual expenses fall between $2,700 and $6,154. Under the new agreement, drug companies would pick of 50 percent of the tab for some of those patients falling into Medicare’s so-called doughnut hole.
“This gap in coverage has been placing a crushing burden on many older Americans who live on fixed incomes and can’t afford thousands of dollars in out-of-pocket expenses,” Obama said today, with key Democratic lawmakers and the head of AARP by his side.
Our goal, our imperative, is to reduce the punishing inflation in health care costs while improving patient care. And to do that, we’re going to have to work together to root out waste and inefficiencies that may pad the bottom line of the insurance industry, but add nothing to the health of our nation. To that end, the pharmaceutical industry has committed to reduce its draw on the health care system by $80 billion over the next 10 years as part of overall health care reform.
For the industry, it’s not quite the sacrifice it appears to be. Big Pharma has already profited handsomely from the creation of the prescription drug program. And, as The Hill’s Jeffrey Young points out today, their $80 billion commitment could pay dividends in the end.
Drug makers may be seen as forfeiting $80 billion but the reality is not so simple. Many seniors who would avail themselves of half-price medicines would simply have done without in the absence of discounts.
Indeed, the Kaiser Family Foundation reported last year that about 3.4 million Medicare beneficiaries hit the doughnut hole in 2007, of which roughly 15 percent stopped taking their medicines as a result.
“Moreover,” Young adds, “PhRMA’s collaboration with [Senate Finance Committee Chairman Max Baucus (D-Mont.)] also could shield them from legislative proposals that would cut deeper into their revenue.”
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16 Comments
Pingback posted June 22, 2009 @ 5:12 pm
[...] Daily life, Democrats, Government, Healthcare, Obama administration at 2:12 pm by LeisureGuy Good news from Mike Lillis of the Washington Independent: President Obama today made official an $80 billion [...]
Comment posted July 6, 2009 @ 1:51 am
When will the new rule regarding the pharmaceutical companies picking up 50% of the cost in the donut hole go into effect?
Comment posted July 9, 2009 @ 9:04 pm
I should have mentioned earlier, but this is only a proposal likely to be included in the not-yet released health reform bill being drafted by the Senate Finance Committee. It will take an act of Congress to complete the deal. Obama alone can't do it.
Comment posted August 21, 2009 @ 8:40 pm
Obama's plan will do little to fill the gap of coverage seniors currently face. His plan will do more to line the pockets of big pharma then to help the average joe.
Comment posted September 18, 2009 @ 4:39 pm
This would be a step in the right direction, but like you said, its not through yet. They don't use the term act of Congress for nothing.
Comment posted January 5, 2010 @ 11:11 am
Thumbs up for Obama's health care deal..it could really help out the elders…at least some of them…but when you look at the health care and medicine in general makes you think what lead to this point when people have to pay to live and if you can't pay you can't live….sad really
Comment posted January 5, 2010 @ 11:11 am
Thumbs up for Obama's health care deal..it could really help out the elders…at least some of them…but when you look at the health care and medicine in general makes you think what lead to this point when people have to pay to live and if you can't pay you can't live….sad really
Comment posted January 5, 2010 @ 4:11 pm
Thumbs up for Obama's health care deal..it could really help out the elders…at least some of them…but when you look at the health care and medicine in general makes you think what lead to this point when people have to pay to live and if you can't pay you can't live….sad really
Comment posted June 20, 2010 @ 6:30 pm
VT..I pay $600a year plus co. pay 2-3 each Rx.on a fixed income with Vt .path how in the world do they think their intitled to $250.00 one time donut hole payment shame on you VT. if congress thought you were intitled they would have sent the money to state s stop trying to find money were the least of us could afford it
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Comment posted September 4, 2011 @ 6:38 pm
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