Older Adults, People with Disabilities See Prescription Cost Savings Under ACA

According to the Department of Health & Human Services (HHS), 8.2 million older adults and individuals with disabilities have saved an average of $1407 since 2010 through the Patient Protection and Affordable Care Act (ACA) rebates and discounts to close the “donut hole” on prescription drug costs.

The Obama administration said these cost-saving measures under the ACA have reduced the burden of prescription drug coverage, saving older adults and individuals with disabilities $11.5 billion since the law was implemented in 2010.

These figures are higher than last year, when more than 6.6 million seniors and people with disabilities with Medicare coverage saved >$7 billion on prescription drugs, averaging $1061 cost-savings per beneficiary.

Under the ACA, out-of-pocket savings on medications for individuals with Medicare coverage continue to grow. According to the law, anyone with a Medicare prescription drug plan who reached the prescription drug donut hole received a $250 rebate. In 2011, beneficiaries in the donut hole began receiving discounts on covered brand name drugs and savings on generic drugs. These savings will gradually increase until 2020 when the donut hole will be closed, according to a report from HHS. In 2014, people with a Medicare prescription drug plan who fall in the donut hole are expected to save approximately 53% on the cost of brand name drugs and save an estimated 28% on the cost of generic drugs.

“By making prescription drugs more affordable, we are improving and promoting the best care for people with Medicare,” said HHS Secretary Sylvia M. Burwell in a statement from the agency.—Kerri Fitzgerald

For more information on state-by-state savings, click here.