The effort to close the “doughnut” hole in Medicare Part D prescription drug plans has survived both the Senate and House versions of health care reform legislation, and is likely to make it into whatever final bill goes to President Obama’s desk for signature.

Under the current Part D program, drug coverage stops when a beneficiary’s spending exceeds $2,510 in a given year; at that point, you pay 100 percent of costs up to $4,500, when so-called “catastrophic coverage” kicks in. The Senate bill would  gradually phase out the coverage gap over 10 years; the House bill called for a 14-year phase-out, but the Senate version likely will be adopted.

Part D premiums and out-of-pocket costs have been rising sharply in recent years. Premiums will jump an average 11 percent in 2010, and 60 percent of the plans will charge deductibles, up from 45 percent in 2009, according to the Kaiser Family Foundation.

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4. Health reform would cut Medicare prescription drug costs for many
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Tags | Medicare