Medicare Drug Discount Saves Elderly Billions

December 8th, 2011

Here’s a good news story:

The health-care overall championed by President Barack Obama’s administration has saved Medicare recipients about $1.5 billion since it went into effect in January 2011. This amounts to an average savings benefit to the elderly of about $569 per person.

According to a story on

“Millions of Americans are receiving free preventive services and getting cheaper prescription drugs” because of the health law, said Marilyn Tavenner, the acting CMS [Centers for Medicare and Medicaid Services] administrator, in the statement.

The drug discounts apply to Medicare recipients who reach a coverage gap in the program’s prescription medicine plans called the “donut hole.” The law requires drugmakers to provide a 50 percent discount to people in the gap until they spend $4,550 a year, after which the government covers almost all drug costs.

So far, so good. I want to remain optimistic that these kinds of savings will continue, but there’s a saying:  What goes down, must go back up. Or something like that.

To read the full article, click here: