Late last week, the U.S. Department of Health and Human Services began mailing out $250 rebate cheques, which means some Medicare Part D prescription-drug plan participants should be receiving a cheque in their mail.
 
Part of President Obama’s health care reform bill legislated earlier this year, this one time rebate is applicable to only those Part D participants who have fallen into the drug-coverage gap, commonly referred to as the ‘doughnut hole’.  The rebate is for helping people alleviate the costs incurred during the gap.
 
When a person’s annual prescription drug cost coverage of 75% reached a set dollar amount, it is then the doughnut hole kicks in, which for 2010, is typically $2,830.  The insured has 100% medication cost coverage, till catastrophic coverage kicks in around the time total drug costs for the year reach $6,440.
 
Rebate checks are mailed out automatically to Medicare Part D participants, within 45 days of their hitting the doughnut hole, with no forms required to be filled out.  For those wanting more information or wishing to find out whether they are eligible for the rebate, they can either call 1-800-633-4227 or visit the website www.medicare.gov.
 
In a further attempt to help close the gap, beginning 2011 doughnut hole people will receive discounts on drugs, which will increase through 2020, around the time the gap is eliminated and standard 75% coverage applies, once again.
 
Beginning 2011, as part of a measure, which is the outcome of the Affordable Care Act signed into law earlier this year, seniors in the doughnut hole will receive a 50% discount on brand name drugs, including a 7% discount on generic drugs, with more changes coming to Medicare because of it.