Rep. Maloney Cheers Reported $670 Million in Prescription Drug Savings New York Seniors Have Received Because of the Affordable Care Act
Centers for Medicare and Medicaid Services reports New York seniors and people with disabilities saved $669,540,104 on prescription drug costs since enactment of Affordable Care Act; nationally, savings totaled $8.9 billion
New York, NY – Congresswoman Carolyn Maloney (NY-12) issued the following statement in a response to a new Centers for Medicare and Medicaid Services (CMS) report that found New York seniors and persons with disabilities with Medicare prescription drug coverage have saved hundreds of millions of dollars as a result of the Affordable Care Act (ACA):
“This is wonderful news. The Affordable Care Act has saved New York’s seniors and people with disabilities nearly $670 million since the law was enacted. This year alone, the average beneficiary has saved $975. That’s real money that has helped ease the financial burdens on hundreds of thousands of New Yorkers and those savings will only grow as the dreaded donut hole is eventually closed for good, thanks to the ACA,” said Congresswoman Carolyn Maloney (NY-12).
According to new data from CMS, seniors and persons with disabilities in New York State with Medicare prescription drug coverage have seen $669,540,104 in savings since the ACA was enacted. In the first 10 months of 2013, 252,843 seniors and people with disabilities saved $246,453,399, or an average of $975 per beneficiary. The ACA has successfully kept cost growth low, which means that these seniors will be able to use more of their Social Security benefit cost of living adjustment on what they choose because the Medicare Part B premium will not increase in 2014.
Nationally, more than 7.3 million seniors and people with disabilities who hit the dreaded donut hole -- the gap in the Medicare prescription drug benefit before catastrophic coverage for prescriptions takes effect – in their Medicare Part D (Medicare Prescription Drug Coverage) plans have saved $8.9 billion on their prescription drugs. That is an average savings of $1,209 per person since the program began. Without this assistance from the ACA, Medicare beneficiaries, once they hit the donut hole, would have to pay out-of-pocket for the entire cost of prescription drugs until they reach catastrophic coverage. As a result of the ACA, in 2010, people with Medicare prescription drug plans who hit the donut hole received a $250 rebate. In 2011, discounts on covered brand name drugs and savings on generic drugs were offered to those who reached the donut hole. And next year, those savings will come to averages of 53 percent for brand name drugs and 28 percent for generics.