News Headlines Article

Reform shrinking ‘doughnut hole’: HHS
Modern Healthcare

About 3.6 million Americans with Medicare who reached the “doughnut hole” saved about $604 on their prescription drugs in 2011, according to data from HHS.

The doughnut hole refers to a coverage gap that requires enrollees who do not qualify for a low-income subsidy to pay the full cost of their drugs. HHS reported Thursday that the Patient Protection and Affordable Care Act—which provides a 50% discount on brand-name prescription drugs, and, in 2012, a 14% discount on generics—saved those 3.6 million beneficiaries about $2.1 billion on their prescription-drug costs last year.