DeLauro Announces Prescription Drug "Donut Hole" Rebate Checks are on Their Way to Seniors

Washington, DC – Congresswoman Rosa L. DeLauro (CT-03) announced that starting today, Medicare will begin to send out tens of thousands of $250 one-time, tax-free rebate checks to seniors to help fill in the prescription drug ‘donut hole.'

The donut hole is a gap in seniors' prescription drug coverage, which begins once drug costs exceed $2,830 and lasts until the catastrophic coverage threshold is reached. While in this gap, seniors are responsible for paying the full cost of their medications. These checks, which will be mailed monthly as seniors enter the age coverage gap, are the first step towards closing the donut hole. As mandated by the new health reform law, beginning in January 2011, seniors in the donut hole will be entitled to a 50 percent discount on brand name drugs, and by 2020, it will be completely closed.

"According to the Kaiser Family Foundation, prices for commonly-used medications in the donut hole have far outpaced inflation since 2006. For example, Actonel, a common osteoporosis treatment, has risen 39 percent since then. Aricept – for Alzheimer's disease – has risen 41 percent. And Plavix, an important medication for reducing blood clots, has gone up 25 percent. These checks are a down payment on reducing prescription drug costs for seniors and eventually closing the donut hole altogether, enabling more seniors will be able to afford the life-saving drugs they need to stay healthy.

"Last year, 46,700 seniors in Connecticut who were enrolled in Medicare fell into the prescription drug donut hole, and were without help in trying to pay for the medication they need. Now, under health reform, help is on the way. These $250 checks are just the first step in reducing seniors' prescription drug costs, and one of many benefits for seniors included in the recently enacted health reform law, including free preventive care services under Medicare, extending Medicare's solvency by an additional 12 years, improving seniors' access to doctors, reducing waste, fraud and abuse, improving care, and expanding home and community-based services.

"In passing the historic health reform law, we stood up against the insurance companies, and for the American people. It will ensure that not only our seniors, but their children and their grandchildren will all have access to the stable, quality, and affordable health care that will let them thrive."