Health InsuranceAARP Ramps Up Effort To Close Medicare Doughnut Hole One In Five Fall Into The Gap, But Few Climb Out
WASHINGTON-AARP"s Health Action Now campaign turns its
attention this week to the growing problem of prescription
drug costs and reducing the gap in prescription drug
coverage for people in Medicare. Closing the Part D
doughnut hole could save people in the program thousands
of dollars in drug costs and keep them healthier by ensuring
they can afford their medications.
The Association is pressing lawmakers to lower individuals"
drug costs as a part of health reform, including closing the
doughnut hole-which forces more than 3 million people in
Medicare to pay their full drug costs each year-and increasing
the availability of generic drugs, particularly generic
versions of costly biologics.
"Prescription drug coverage has literally been a life-saver
for people in Medicare, but the widening doughnut hole is
still leaving too many Americans on their own to face
skyrocketing drug costs," said AARP Executive Vice President
Nancy LeaMond. "We know that higher costs lead people to skip
doses or give up their prescriptions entirely, putting their
health in jeopardy and driving up long-term costs."
AARP is working with leaders on Capitol Hill to close the
doughnut hole, which is predicted to top $6,000 by 2016.
Today, 3.4 million people fall into the gap each year, while
only 15 percent of those are able to get out and receive
catastrophic coverage.
AARP is also fighting to bring more generic drugs to market,
particularly generic versions of costly biologic drugs used to
treat diseases like cancer and multiple sclerosis. Unlike
traditional chemical drugs, biologics are created from living
organisms and have no FDA approval process for generic versions.
Without generic competition, biologic makers are free to charge
thousands of dollars per month, even for drugs that have been on
the market for many years.
LeaMond added: "Since the 1980s, safe, affordable generic drugs
have helped Americans save billions of dollars on their health
care bills. With biologics now making up a large and growing
share of the market, it"s time to bring those same savings to
people taking these breakthrough drugs while protecting medical
innovation."
AARP has endorsed the "Promoting Innovation and Access to
Life-Saving Medicine Act" (H.R. 1427/S. 726), which would create
an FDA approval process-similar to that for traditional
prescription drugs-for generic biologic drugs.
In addition, AARP is working to help the four million low-income
Americans who are eligible for the Medicare Part D Low-Income
Subsidy, which greatly reduces a person"s drug costs and has no
gap in coverage. The Association is fighting to increase access
to the benefit by raising and ultimately eliminating the asset
limit, expanding eligibility, standardizing eligibility rules,
and raising awareness about the program.
AARP