WASHINGTON – The Patient Protection and Affordable Care Act saved more than $2.1 billion in the cost of prescription drugs for more than 3.6 million seniors enrolled in Medicare in 2011.
The data, released yesterday by the U.S. Department of Health and Human Services, showed that savings have come from a variety of provisions in the law ranging from providing discounts on prescription medications to continuing to close the prescription medication doughnut hole. In all, the report noted, seniors on Medicare can expect to save an average of $4,200 by 2021 due to PPACA.
[See also: Medicare drug premiums will not increase in 201.]
“The Affordable Care Act is already saving money for millions of Americans with Medicare,” said HHS Secretary Kathleen Sebelius in a press release. “As we move forward, we will close the donut hole completely and save even more money for everyone with Medicare.”
Savings for specific disease and medical conditions included:
- Blood sugar lowering drugs - $300,259,057
- Triglyceride and cholesterol lowering drugs - $263,182,711
- Asthma and other lung related (non-cancer) disease drugs - $228,522,896
- Drugs used to lower blood pressure - $120,214,657
- Psychiatric drugs - $101,511,953
- Drugs used to prevent platelets from clotting blood - $195,230,876
- Anti-dementia drugs - $108,868,359
- Anti-depression drugs - $72,917,239
- Cancer drugs - $71,854,747
- Drugs used to treat ulcers - $70,007,664
- All other drug therapeutic uses - $626,822,848
“Most of these drugs are for chronic conditions, suggesting that the discounts are helping people pay for expensive medications that they must take on an ongoing basis,” noted a fact sheet from the Centers for Medicare & Medicaid Services Office of Public Affairs. “Making such prescriptions more affordable also helps prevent more costly care that often results from conditions like high blood pressure and cholesterol.”
In 2012, health reform provides a 50 percent discount on brand-name prescription drugs and a 14 percent price break on generic medications. Last year, the law included a seven percent discount on generic medications for seniors who reached the doughnut hole, prescription drug coverage gap. These generic medication discounts saved seniors $32.1 million last year.
[See also: Medicare patients take advantage of free preventive benefits.]
In all, 3.6 million seniors hit the doughnut hole and saved an average of $604 on their prescription drug costs due to changes in the law. The report also noted that women were significant winners in the health reform sweepstakes, saving more than $1.2 billion on their prescription medications.
The discounts on medications for seniors enrolled in Medicare Part D plans are set to accelerate over the next nine years. By 2020 the law will provide 75 percent discounts on both brand-name and generic medications covered by Part D.
Last year, 4 million seniors who hit the donut hole received rebate checks of $250 regardless of their consumption of medications.
