On August 4, 2011, HSS (the U.S. Department of Health and Human Services) released its latest data on some of the initiatives rolled out under the Affordable Care Act. Focusing on free preventive care services and drug rebates in the donut hole, these figures give a snapshot of take-up by people with Medicare. How are these programs working out?
The Affordable Care Act and Medicare Benefits
These two programs were set out to help remove or lower certain health care costs for people with Medicare. As of 2011, many are entitled to a free annual wellness visit and a range of preventive care services. Those that reach the Part D donut hole gap have benefited from a 50% discount on brand name drugs. In the HHS report, Secretary Kathleen Sebelius states that this recent data shows that: “The Affordable Care Act is delivering on its promise of better health care for people with Medicare.” So, how many people are actually benefiting?
Annual Wellness Visits and Free Preventive Services
By March 2011, 150,000 free annual wellness visits had been logged by HHS. The data released on August 4 showed a significant increase on take-up. A total of 1,061,780 people with Original Medicare benefited from a free exam between January and July this year.
During this period, a range of preventive care services were also made available. Take-up here reached 51.5% of those with Original Medicare. This effectively means that 17,336,421 people were given one or more free preventive services. In an AARP report on the new data, David Certner, its Legislative Policy Director, stated that these no-cost services for seniors: "can keep them healthier and save them money on more costly and intensive care."
Brand Name Drug Discounts in the Medicare Part D Donut Hole
Another of these initiatives gives seniors with Medicare a way to save money on prescription charges when they reach the Part D donut hole. During 2011, this gives a 50% discount on brand name drugs. In March 2011, HHS announced that savings of $38m had already been made. These figures have also seen a significant increase in recent months.
Based on data collected through the end of June 2011, savings for seniors in the donut hole now total $461m. This has allowed 899,000 people with Medicare to benefit from reduced costs, making vital drugs more affordable. This could go some way to alleviate concerns that some seniors on low incomes would have to stop taking medication if they could not afford it.
This data indicates that some progress has been made to make some health care services more accessible and affordable. Existing and future initiatives, such as the Medicare Part D $250 rebate and the ultimate closure of the donut hole gap by 2020, should also add to improvements over the next few years.
Carol Finch - Carol Finch is the Topic Editor for Retirement Planning, Budgeting, E-Commerce & Technical/Business Writing on Suite101.
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