Medicare
Gradually closes the gap in Medicare coverage of prescription drugs, known as the doughnut hole beginning in 2010.
Senate bill
Would increase the amount of drug costs covered by Medicare by $500 in 2010. And beginning on July 1, 2010, drug makers would provide 50 percent discounts on brand-name drugs and biologics that low- and middle-income beneficiaries have to pay for themselves once the coverage gap begins. Currently, older Americans in the coverage gap pay 25 percent of the cost of their drugs up to $2,830 in out-of-pocket spending, then the full cost of drugs up to $6,300 — a $3,470 “doughnut hole” — after which Medicare catastrophic coverage kicks in and seniors pay only 5 percent of the cost of additional drugs.
Reconciliation bill
Would give a one-time, $250 rebate to people who face the coverage gap in 2010 (instead of the $500 increase).
The 50 percent discount on brand-name drugs would begin in 2011. By 2020, the government would pay to provide up to 75 percent discount on brand-name and generic drugs, eventually closing the coverage gap.
Senate bill
Would increase the amount of drug costs covered by Medicare by $500 in 2010. And beginning on July 1, 2010, drug makers would provide 50 percent discounts on brand-name drugs and biologics that low- and middle-income beneficiaries have to pay for themselves once the coverage gap begins. Currently, older Americans in the coverage gap pay 25 percent of the cost of their drugs up to $2,830 in out-of-pocket spending, then the full cost of drugs up to $6,300 — a $3,470 “doughnut hole” — after which Medicare catastrophic coverage kicks in and seniors pay only 5 percent of the cost of additional drugs.
Reconciliation bill
Would give a one-time, $250 rebate to people who face the coverage gap in 2010 (instead of the $500 increase).
The 50 percent discount on brand-name drugs would begin in 2011. By 2020, the government would pay to provide up to 75 percent discount on brand-name and generic drugs, eventually closing the coverage gap.
