Seniors To Save More On Prescription Drugs

Seniors To Save More On Prescription Drugs in Individual Health Insurance

This week, the big pharmaceutical companies agreed to help seniors better afford their prescription drugs, particularly when they reach a major gap in coverage with their Medicare Part D plans.

With Medicare prescription drug coverage, informally known as Medicare Part D, seniors have all their prescription drugs covered up until they reach $2,700 in total costs for the year. After reaching $2,700, seniors get zero coverage until those costs go over $6,100.

It’s a whopping $3,400 gap, commonly known as the “doughnut hole.”

Now, drug companies say they’ll give seniors a 50 percent discount for their medication if they fall in the doughnut hole, reported The New York Times.

President Obama hailed this move as a “historic agreement to lower drugs costs,” but as the Times article pointed out, the federal government might not reap any of the benefits.

Because the half-off discount only eases out-of-pocket costs for seniors who reach the doughnut hole, the government gets left out of the deal.

But really, if we had to pick who would save money between the people and the government, we ought to choose the people every single time.

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