• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
California Health Advocates

California Health Advocates

  • Contact
  • Home
  • About Us
    • Contact
    • Our Team
    • Mission
    • Education Services
    • About HICAP
    • Press
    • Testimonials
  • MEDICARE COUNSELING
  • Fact Sheets
  • Topics
    • The Basics
    • Prescription Drugs
    • Low-Income Help
    • Medigap
    • Medicare Advantage
    • Other Health Insurance
    • Appeals
    • Billing & Claims
    • Disabilities
    • Long-Term Care
    • Tribal Nations & Medicare
    • Health Care Reform
    • Advocacy & Policy
    • Glossary
  • Fraud & Abuse
  • Medicare Complaints
  • Blog
  • Donate

Celebrating Its 48th Year, Data Shows Medicare Program is Strong

California Health Advocates > News > Prescription Drugs > Celebrating Its 48th Year, Data Shows Medicare Program is Strong

Posted by Karen Joy Fletcher on July 30, 2013

A day before Medicare’s 48th birthday, the Department of Health and Human Services (HHS) released new information confirming a strong Medicare program. Over 6.6 million people with Medicare have saved over $7 billion on prescription drugs as a result of the Affordable Care Act (ACA). These savings average $1,061 per beneficiary in drug costs while a beneficiary is in the “donut hole” coverage gap that the law closes over time.

In addition, 16.5 million people with traditional Medicare took advantage of at least one free preventive service in the first six months of 2013.

This news also comes at a time of historically low levels of growth in Medicare spending. From 2010 to 2012, Medicare spending per beneficiary grew at 1.7% annually, more slowly than the average rate of growth in the Consumer Price Index, and substantially more slowly than the per capita rate of growth in the economy. All of this good news is a direct result of the the health care reform law.

Savings on Prescription Drugs

Because of the Affordable Care Act, beneficiaries’ out-of-pocket savings on medications continue to grow. As mentioned, over 6.6 million beneficiaries have saved over $7 billion on prescription drugs in the Medicare Part D donut hole since the law was enacted, for an average of $1,061.

People with Medicare in the donut hole now receive discounts and some coverage when they purchase prescription drugs at a pharmacy or order them through the mail, until they reach the catastrophic coverage phase. The Affordable Care Act gave those who reached the donut hole in 2010 a one-time $250 check, then began phasing in discounts and coverage for brand-name and generic prescription drugs beginning in 2011. The law will provide additional savings each year until the coverage gap is closed in 2020.

For more information on how the Affordable Care Act closes the donut hole, see our article: What’s New for Part D in 2013? Lowered Costs, New Covered Drugs, Appeal Changes.

Preventive Services

By making certain preventive services available with no cost-sharing obligations, the ACA also helps Americans take charge of their own health.  People can now better afford to work with health care professionals to prevent disease, detect problems early when treatment works best, and monitor health conditions.

In Medicare, the ACA eliminated coinsurance and the Part B deductible for recommended preventive services, including many cancer screenings and other important benefits. For example, before the law’s passage, a person with Medicare could pay as much as $160 in cost-sharing for some colorectal cancer screenings. Today, that screening is free.

In the first 6 months of 2013, 16.5 million people with traditional Medicare took advantage of at least 1 free preventive service. For more information on the additional coverage for preventive services, see our article: Heath Care Reform Brings Changes to Medicare.

For more information on the health care reform law, visit: healthcare.gov.

This article was edited from a press release from the Department of Health and Human Services.

Filed Under: Health Care Reform, Medicare Basics, Prescription Drugs

Previous Post: « Medicare Celebrates 48 Years ~ Let’s Keep this Important Program for Future Generations
Next Post: CHA Testifies on the Need for Long-Term Care Services & Recommends Innovative, Comprehensive Solutions »

About Karen Joy Fletcher

Our blogger Karen Joy Fletcher is CHA's Communications Director. With a Masters in Public Health from UC Berkeley, she is the online "public face" of the organization, provides technical expertise, writing and research on Medicare and other health care issues. She is responsible for digital content creation, management of CHA’s editorial calendar, and managing all aspects of CHA’s social media presence. She loves being a "communicator" and enjoys networking and collaborating with the passionate people and agencies in the health advocacy field. See her current articles.

Related Posts

  • Elaine Speaks of Medicare & California-Specific Issues, Common Misconceptions, & Current Hot Topics
  • Obama Holds Tele-Town Hall Meeting to Discuss Health Reform with Seniors
  • Don’t Believe the Lies ~ Medicare Drug Negotiations Savings Would Be ReInvested for More Medicare Benefits
  • Tell Congress to Say Yes to Medicare Improvements ~ Now is the Time!

Primary Sidebar

Change Text Size

  • 100%  110%  120%  130%  

News & Blog Categories

  • Medicare Advantage
  • Low-Income help
  • Medicare & Disabilities
  • Medicare Basics
  • Prescription Drugs
  • Medicare & Other Health Insurance
  • Medicare Billings, Claims & Appeals
  • Health Care Disparities
  • Fraud & Abuse

—

  • COVID-19
  • Resources
  • Health Care Reform
  • Long-Term Care
  • CHA News

—

  • Advocacy & Policy
  • Letters and Comments to Policymakers
  • Legislative and Congressional Testimony
  • Policy Briefs

Send Us Comment

Do you have comments or concerns about your Medicare coverage? Issues regarding getting your needed prescriptions from your Part D plan, or a Medicare Advantage plan representative's marketing practices? Let us know at comments@cahealthadvocates.org.

We are dedicated to making Medicare's program work well for all beneficiaries. Your feedback from your own or your client's concerns and experiences with Medicare, will guide our Medicare advocacy efforts with key policy and decision-makers in both California and nationally with the Centers for Medicare and Medicaid Services (CMS) and Congress.

Archives

Donate Today

Footer

Sign up for our newsletter

Choose the news you'd like to receive

Important Links

  • About Us
  • Fact Sheets
  • Blog
  • Donate
  • Contact
  • Privacy Notice
  • Cookie Policy
  • Accessibility Statement

Follow Us

Copyright © 2023 · California Health Advocates · Web Design by TWK Web and Print Design · Log in