Affordable Care Act Saves Seniors $2.1 Billion in Drug Costs

The Affordable Care Act has saved nearly 3.6 million people enrolled in Medicare $2.1 billion on their prescription drugs in 2011, finds a new report by the U.S. Department of Health and Human Services (HHS). HHS Secretary Kathleen Sebelius says the health care reform law signed by President Obama in 2010:

is already saving money for millions of Americans with Medicare. As we move forward, we will close the donut hole completely and save even more money for everyone with Medicare.

The Affordable Care Act—which Republican lawmakers are fighting to repeal—provides a 50 percent discount on brand-name prescription drugs and, beginning this year, a 14 percent discount on generics. Last year, it provided a 7 percent discount on covered generic medications for people who hit the prescription drug coverage gap known as the donut hole, with more than 2.8 million beneficiaries receiving $32.1 million in savings on generics.

Overall, the 3.6 million Americans who hit the donut hole saved an average of $604 on the cost of their prescription drugs. The Affordable Care Act closes the donut hole completely by 2020.

Click here for a state-by-state look at donut hole savings figures for today’s donut and here for a fact sheet.