Medicare beneficiaries have saved a total of about $4.5 billion on
prescription medications because of the 2010 health care law since
January 2011, the Department of Health and Human Services plans to announce today.
"We're seeing consistent, steady savings
for seniors thanks to the health care law," said Jon Blum, director of
the Center for Medicare. "In just 21/2 half years, seniors have seen
billions in savings, and those savings will continue to grow as the
doughnut hole is fully closed."
The announcement comes two days after the Congressional Budget Office
found that about 2 million more people than expected would be paying an
average $1,200 penalty for not purchasing insurance as required by the
law beginning in 2014. The number affected is significantly higher than
the 4 million the CBO had estimated would pay a penalty in 2010, shortly
after the bill passed.
In a statement, HHS
spokeswoman Erin Shields Britt said that the CBO found 98% of Americans
would not be affected by the penalty. "This update doesn't change the
basic fact that the individual responsibility policy will only affect
people who can afford health care but choose not to buy it," Britt said.
The law provides subsidies to people who fall below 400% of the poverty
line.
Drugmakers participating in Medicare
agreed to give the government a 50% discount on premium drugs and 14% on
generic drugs as part of the law, and the government passed those
savings on to seniors. In 2012, the coverage gap - or "doughnut hole" -
is $2,930. The law eliminates that gap by 2020. So far, no research has
shown that the drugmakers have passed costs from those discounts on to
other consumers, as some opponents of the law had feared.
Compared
to last year, more patients have saved more money this year, Blum said.
Through August 2012, beneficiaries have saved an average of $641.
"This
could mean that more people are taking their medication as directed by
their doctor on their prescriptions because they're more affordable,"
Blum said.
The increased number of patients on
medications could also be the result of seniors using the provision of
the law that eliminates out-of-pocket expenses for annual and preventive
exams. Before, a colorectal-cancer screening could cost as much as
$160, according to Health and Human Services.
"The
law is already saving money on prescription drugs and ensuring millions
of seniors can get the preventive care they need to stay healthy," HHS
Secretary Kathleen Sebelius said.
The
announcement comes just after the Congressional Budget Office found that
about 2 million more people than expected would be paying an average
$1,200 penalty for not purchasing insurance as required by the law
beginning in 2014. In a statement, HHS spokeswoman Erin Shields Britt
said that the CBO found 98% of Americans would not be affected by the
penalty.
"This update doesn't change the basic
fact that the individual responsibility policy will only affect people
who can afford health care but choose not to buy it," Britt said. The
law provides subsidies to people who fall below 400% of the poverty
line.
USA Today