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Drug Price Break for New Yorkers in “Doughnut Hole” Hailed

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Wednesday, June 24, 2009   

Albany, NY - Prescription drug makers told Congress and the White House this week they would halve the price of drugs for Medicare Part D enrollees who fall into what's known as the "doughnut hole." Every year, more than 700,000 New Yorkers on Medicare lose coverage after their yearly drug costs reach $2,700. Coverage resumes when their costs rise past $6,100 a year. The difference is the "doughnut hole."

The agreement was good news to AARP New York President Marilyn Pinsky - and a bit surprising.

"We all think of Congress as moving at a snail's pace and a lot of bickering going on, but I think to have an agreement come so soon was really exciting."

Pinsky believes closing the rest of the "doughnut hole" should be one goal of major healthcare reform, although it is expected to face a fierce fight on Capitol Hill. However, she sees the agreement on lowering drug costs as a good omen for the effort to overhaul the entire healthcare system.

"Well, the fact that Congress, the President and advocates like AARP were able to come to agreement, on a piece of the problem, gives us a lot of hope.”

Many seniors whose drug costs bring them into the coverage gap simply stop taking their prescription medications because they can't afford them, or they make compromises, such as cutting pills in half. The gap won't be eliminated by the new agreement, but Pinsky calls it "wonderful," nonetheless.

"It solves a large part of the 'doughnut hole' problem. It's significant progress towards getting to that goal; it's a major start."

This week, AARP unveiled a tool on its Web site, a "Doughnut Hole Calculator" to guide Medicare enrollees through their prescription drug options to determine whether they will fall into the coverage gap. It's online at www.aarp.org/doughnuthole.




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