Rebate Checks on the Way to Virginia Medicare Recipients

Press Release

Beginning today, thousands of Virginia seniors will start receiving $250 rebate checks to help them with prescription drug prices as part of the recent health care reform passed by Congress. In 2009, approximately 91,500 Medicare recipients in Virginia fell into the so-called "doughnut hole" in prescription benefit coverage and were forced to pay prescription expenses out of pocket. Once Medicare recipients hit the coverage limits, their check will be issued automatically within about 45 days. No action is required to receive a rebate check.

"This is great news for our seniors and the first step in helping bring down their prescription drug costs," said Rep. Perriello. "Unfortunately, many of those opposed to health care reform have tried to scare our seniors with outright falsehoods, but as I go around the district explaining the benefits, seniors are excited about them and in fact, hope we can accelerate the new provisions. These rebate checks mean real help for thousands of Medicare recipients, and the first step in fulfilling our obligations to our seniors."

The Medicare Part D coverage gap, commonly called the "doughnut hole," requires Medicare recipients to pay for prescriptions out of pocket once their costs exceed $2,830 for the year, with coverage provided again after reaching a "catastrophic" level of expenses in excess of $6,000.

As part of the health care reform package passed by Congress, seniors who fall into the coverage gap will get a 50% discount on name-brand prescription drugs and a 75% discount on generics beginning in 2011. The rebate checks and discounts for seniors in the coverage gap are part of the health care reform bill's plan to completely eliminate the "doughnut hole" by 2020.

Rebate checks are being issued three weeks ahead of schedule, but Rep. Perriello and advocacy groups are reminding seniors to be on the lookout for fraud associated with these checks.

"It's unconscionable, but we are seeing scam artists that seek to exploit those seniors expecting a rebate check," said Rep. Perriello. "I want to remind everyone that no action is required to receive your check, so if someone contacts you seeking personal information, like Social Security numbers or bank accounts, terminate the contact and notify the police."

The Jefferson Area Board on Aging (JABA) in Charlottesville, VA recently alerted the public of potential scams aimed at seniors expecting checks. According to JABA, scammers are targeting seniors by phone, email, and mail to offer assistance in completing non-existent forms that include personal information.

"The rebate is wonderful news for many seniors who have suffered financially because of the donut hole," says Gordon Walker, CEO of JABA. "However, it's important to remember that there are always scam artists ready to take advantage of new programs. Anyone who receives an unsolicited phone call, email or letter offering to "help fill out' a rebate application form should immediately hang up the phone, delete the email or toss the letter. If there is any doubt, call Medicare directly at 1-888-633-4257 or JABA's insurance counseling program, VICAP, at 434-817-5222. "

Constituents may also call Rep. Perriello's constituent services office at 1-888-486-6487 if they have any questions.

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