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This press release is an announcement submitted by KaiserEDU.org, and was not written by Diabetes Health.
On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act into law (P.L. 111-148). The health care reform law, which incorporates changes made by the Health Care and Education Reconciliation Act of 2010, makes several important changes to the Medicare Part D drug benefit to reduce Part D enrollees' out-of-pocket liability when they reach the coverage gap, known as the "doughnut hole."
Since the Medicare Part D drug benefit took effect in 2006, beneficiaries enrolled in Part D plans have been required to pay 100 percent of their prescription drug costs after their total drug spending exceeds an initial coverage limit until they qualify for catastrophic coverage. The coverage gap is $3,610 in 2010 and is projected to exceed $6,000 by 2020. Most Part D plans have a coverage gap. In 2007, an estimated 3.4 million Part D enrollees (14 percent of all enrollees) reached the coverage gap (1).
The health reform law will reduce the amount that Medicare Part D enrollees are required to pay for their prescriptions when they reach the coverage gap, gradually phasing in different levels of subsidies for brandname and generic drugs in the gap beginning in 2011.
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1. Hoadley J et al., "The Medicare Part D Coverage Gap: Costs and Consequences in 2007," Kaiser Family Foundation, August 2008, kff.org/medicare.
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Diabetes Health is the essential resource for people living with diabetes- both newly diagnosed and experienced as well as the professionals who care for them. We provide balanced expert news and information on living healthfully with diabetes. Each issue includes cutting-edge editorial coverage of new products, research, treatment options, and meaningful lifestyle issues.