Long-Term Care

First batch of Medicare rebate checks mailed this week

Contemporary Long-Term Care Weekly, June 10, 2010

Beginning June 10, the first round of $250 Medicare rebate checks will be mailed to approximately 80,000 seniors who currently find themselves in the Medicare prescription drug coverage gap, commonly known as the donut hole. The checks are being shipped out three weeks earlier than anticipated and constitute the government’s first step in eliminating the donut hole, one of the most notable Medicare initiatives outlined in the Patient Protection and Affordable Care Act. The Department of Health and Human Services (HHS) estimates that roughly four million seniors will receive a rebate check this year, according to CNNMoney.

Medicare beneficiaries who fall into the gap in 2011 will receive a 7% discount for generic drugs and a 50% discount on brand-name drugs. The discounts will increase each year until the complete closure of the donut hole, which has been set for 2020. This year, the donut hole stretches from $2,830 to $6,440. Seniors whose drug costs fall into this range must pay out of pocket to receive their prescriptions. According to CMS, the rebate checks will be mailed on a monthly basis, with qualifying beneficiaries receiving their $250 within 45 days of hitting the coverage gap.

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