If you are a Medicare beneficiary who is spending a lot on prescription drugs this year, your first benefit from the new health care law could be in the mail. Medicare Part D beneficiaries who fall into the doughnut hole coverage gap in 2010 began receiving $250 rebate checks last week. This rebate check is the first step toward closing the "doughnut hole" - the coverage gap in Medicare Part D that is a costly burden to millions of older Americans.
More than 3 million people fall into the doughnut hole annually; and more than 12 percent of Nevada's 327,000 Medicare beneficiaries are expected to fall into the coverage gap this year. Many more worry they will join this unfortunate group, as drug costs continue to soar. Manufacturer prices for brand-name medications, widely used by people in Medicare, jumped almost 10 percent in the last year, according to AARP's latest Rx Watchdog report, released in May 2010.
The $250 rebate check is the first step in closing the prescription drug coverage gap. Starting in 2011, people enrolled in Part D will receive a 50 percent discount on brand-name drugs and a 7 percent discount on generic drugs when they reach the doughnut hole. These discounts will gradually increase until the doughnut hole is eliminated in 2020.
Though the Department of Health and Human Services will send automatically the checks to those in the doughnut hole, AARP wants Medicare beneficiaries to be prepared with a few facts about the rebate. Here are some tips:
• Watch out for scams. If a person tells you, especially for a fee, they can help you get the check faster, don't believe them. Report them to the police, Nevada Attorney General Catherine Cortez Masto at 1-888-738-7305 or Medicare at 1-800-633-4227.
• Hang on to your receipts. People with Medicare Part D coverage who fall into the doughnut hole should automatically get a $250 check this year. But if no rebate arrives and you think it should, it will help to have your receipts when you talk to Medicare.
• Be a smart consumer. Some Medicare beneficiaries may be able to avoid altogether - or at least, delay - falling into the doughnut hole and save money on prescription drugs. AARP's Doughnut hole calculator www.aarp.org/doughnuthole can show Medicare beneficiaries when they are most likely to fall into the doughnut hole as well as help identify less costly but equally effective drugs available in their Part D plans.
• Make sure your address is current. Your check will be mailed to the same address used by Social Security. If you need to change your address, call Social Security at 1-800-772-1213 or visiting your local Social Security office.
Closing the Medicare prescription drug coverage gap has been a top priority for AARP and our members.
No American should have to sacrifice their health or peace of mind because they can't afford medicine; the new health care law is now beginning to address this concern.
• Carla Sloan is state director of AARP Nevada State Office.