From medicarerights.org

Early Returns on the Affordable Care Act’s Closure of the Coverage Gap Demonstrate Program’s Success

According to the Centers for Medicare & Medicaid Services (CMS), 271,000 people with Medicare have already used the Part D coverage gap discount established by the Affordable Care Act (ACA). On average, individuals saved $613, resulting in $166 million in total drug savings so far. Those living in Florida and Texas saved nearly $30 million combined. The ACA phases out the Medicare prescription drug coverage gap, also known as “the doughnut hole.” While in the doughnut hole, people with Medicare must pay out of pocket for the full cost of their drugs. This year, Medicare consumers receive a fifty percent discount on brand name drugs and a seven percent discount on generic drugs when they enter the coverage gap. The amount of the discount will steadily increase over the next ten years until 2020 when the coverage gap is completely eliminated. At that time, individuals with Medicare will be responsible for the standard 25 percent cost-sharing for both brand name and generic drugs.

There are several other ACA provisions that take effect in 2011 that reduce out of pocket costs for people with Medicare. Beginning back in January, Medicare no longer charges cost-sharing for certain preventive benefits for qualified individuals including diabetes screening, mammograms, and smoking cessation. Also, Medicare will now cover an annual Wellness Visit during which patients and doctors can determine care plans aimed to help prevent conditions that put patients’ health at risk.