Affordable Care Act Has Saved Medicare Beneficiaries $260 Million on Prescription Drugs in 5 Months

The U.S. Department of Health & Human Services (HHS), Centers for Medicare and Medicaid Services (CMS), reported today that in the first five months of 2011, the Affordable Care Act has saved $260 Million in prescription drug costs for seniors on Medicare Part D.

Following is a press release issued today by HHS/ CMS:

June 28, 2011

Affordable Care Act Delivers Cheaper Prescription Drugs to Nearly 500,000 People

Law Has Already Saved $260 Million, Averaging $545 for People in Donut Hole

Thanks to the Affordable Care Act, nearly 500,000 people with Medicare Part D who reached the gap in coverage know as the “donut hole” have received an automatic 50 percent discount on their covered brand name prescription drugs. The Centers for Medicare & Medicaid Services (CMS) posted data today that shows 478,272 Medicare beneficiaries have benefitted from the 50 percent discount in the first five months of 2011. These beneficiaries saved a total of $260,534,102, or an average savings of $545 per beneficiary.

The number of seniors benefiting from this discount continues to grow. In the month of May alone, the total number of beneficiaries who received the discount rose by over 76 percent, while the dollar amount of savings rose by over 56 percent. Based on data from past years, CMS expects that as many as 4 million additional beneficiaries will fall into the coverage gap later this year and benefit from these discounts.

Most of these discounts are helping Americans with serious medical conditions – nearly 14 percent of the benefits provided to date – more than $36 million – are for cancer drugs, more than 8 percent or $21 million for drugs to help control high blood pressure and cholesterol, and another more than 7 percent – about $20 million – are for drugs provides to diabetic patients.

“Without the Affordable Care Act, many seniors and people with disabilities would pay twice as much for their prescription drugs in the donut hole,” said CMS Administrator Donald M. Berwick, M.D. “People on Medicare will now be able to better afford their medicine, and these discounts will continue as coverage in the gap grows until the donut hole is closed.”

A November 2010 analysis by the U.S. Department of Health and Human Services estimated that Medicare improvements in the Affordable Care Act would provide average savings for those enrolled in traditional Medicare totaling more than $3,500 over the next 10 years, with even higher average savings of as much as $12,300 for those with higher drug costs.

For more information on how the prescription drug discount and other provisions of the Affordable Care Act benefits seniors and people with disabilities, visit

People with Medicare can learn more about these new benefits, including new free preventive benefits and other helpful information by contacting customer service representatives at 1-800-MEDICARE (1-800-633-4227 toll free) or by visiting

For More Information

Contact: Contact: CMS Media Relations Group – (202) 690-6145


1 comment to Affordable Care Act Has Saved Medicare Beneficiaries $260 Million on Prescription Drugs in 5 Months

  • Editor

    This article is open to comment. We invite you to contribute your thoughts, observations, and comments on this and other articles on HelpingYouCare™. All comments are subject to moderation. Please Register and Login to post comments more easily, without having to re-enter your information each time. Welcome to the HelpingYouCare™ Community!

.............................................................................Back to Top...

Login to Post Comments

Register & Login above to post comments. Click here for Help. To join a Support Group, Register/ Login at CaregiversLikeUs.

The Fifteen Newest Updates on HelpingYouCare® As Of Today

New Posts on HelpingYouCare® by Day or Month

July 2024
« Feb    

Survey/ Opinion Poll

Participate in a brief
Survey/ Opinion Poll »

We publish the results of our periodic Surveys & Opinion Polls, anonymously. See Survey/ Opinion Poll Results ».

Contribute Content

Write and contribute articles, posts, or other content to this Site, or share links to useful information & resources you have found with the HelpingYouCare® Community.
Read How…

If you find any broken links on this Site, we will appreciate your reporting them to us:

Report Broken Links