$250 Medicare Rebate Checks to Begin Hitting Seniors' Mailboxes

Press Release

As part of the effort to close the gap in Medicare's prescription drug coverage, $250 checks will begin hitting the mailboxes of tens of thousands of seniors this week, Congressman André Carson said today.

Under the recently enacted health reform law, seniors whose drug costs exceed the threshold under Medicare Part D, known as the "donut hole," will receive this one-time, tax-free $250 rebate check in 2010. These checks will continue to be mailed monthly over the next several months as seniors reach the coverage gap.

Last year, roughly 81,800 Medicare beneficiaries in Indiana hit the donut hole and received no extra help to defray the cost of their prescription drugs. Beginning in January 2011, seniors in the donut hole will receive a 50 percent discount on brand name drugs as part of the phase in process that will eventually close the donut hole completely by 2020.

"This is just one of many examples of how the health care reform law is helping seniors," said Congressman Carson. "Many seniors are on fixed incomes and struggle to pay for necessary medication. These rebate checks will help to ease the burden immediately while the new law ultimately closes the gap that has caused too many older Americans to go without essential prescription drugs."

Medicare recipients don't have to do anything to get the $250 check. Once their drug costs for the year hit $2,830, the one-time check will be issued automatically.

Making prescription drugs more affordable is one of the many benefits for seniors included in the recently enacted health reform law. Other benefits for seniors include:

* Free preventive care services under Medicare, beginning in 2011.
* Extending the solvency of Medicare by an additional 12 years, from 2017 to 2029.
* Improved care through greater access to doctors and better coordination among health providers.
* Cracking down on waste, fraud and abuse within Medicare
* The expansion of home and community-based health services that allow seniors to remain at home during long-term health challenges.

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