California Medicare Beneficiaries Save $1.6 Billion on Prescriptions

Californians with Medicare benefits have received discounts of $1,690,719,706 on prescription drugs since enactment of the Affordable Care Act in 2010, according to the Department of Health and Human Services.

In 2015, the average was $1,044 for recipients, thanks to the Affordable Care Act closing the Medicare Part D prescription drug donut hole.

In addition, more than three million people last year took advantage of at least one free preventive service.

“Medicare consumers are now more engaged and empowered in their own health thanks to the Affordable Care Act,” said Centers for Medicare & Medicaid Services Acting Administrator Andy Slavitt. “Millions are now able to access more affordable prescription medicine for their chronic conditions and millions more are staying healthier by accessing preventive services, especially vital for people living with disabilities or growing older.”

The Affordable Care Act has been gradually closing the donut hole, a gap in coverage where beneficiaries had to pay the full cost of their prescriptions out of pocket, before catastrophic coverage for prescriptions took effect. The donut hole will be completely closed by 2020.

This year, people with Medicare Part D who are in the donut hole will receive discounts and savings of 55 percent on the cost of brand name drugs and 42 percent on the cost of generic drugs.

--Image via Shutterstock